In 2013, Terri purchased 260 shares of Flowers R Us stock at a cost of $9,600 as an investment. In 2018, when the fair market value was $11,400, Terri gave the stock to her daughter, Michele. Assuming no gift tax was paid, if Michele sells the stock for $13,800, she will recognize:
A. no gain or loss.
B. $2,400 gain.
C. $1,800 gain.
D. $4,200 gain.
Answer: D
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Indicate whether the statement is true or false