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Question - Joseph Plenik sells stock to Jacob Plenik (Joseph's grandchild). The selling price was $1,000. Joseph's cost basis was $1,500. Jacob, a shrewd salesman, manages to sell the stock for $1,200 a day later. What is Jacob's gain or loss on the sale?
A. 0
B. Loss of $300 (uses grandfather's basis)
C. Gain of $200 (uses selling price from sale a day before)
D. Gain of $200 for Jacob, Loss of $500 for Joseph.
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