On June 2, 2012, Ashley purchased 100 shares of stock for $10,000. When it was worth $20,000, on December 25, 2012, she gifted all the stock to her nephew, Richard. Richard sold the stock on October 15, 2013, for its fair market value of $25,000. What is Richard's tax consequence?
A. $5,000 short-term capital gain.
B. $5,000 long-term capital gain.
C. $15,000 short-term capital gain.
D. $15,000 long-term capital gain.
Long term... View the full answer