Pekoe sold stock to rose for $12,000, its fair market value. the stock cost pekoe $16,000 5 years ago. also, pekoe sold earl (an unrelated party) stock for $6,500 that cost $8,500 3 years ago. rose and pekoe are brother and sister. what is pekoe's recognized loss?
a. $6,500
b. $2,000
c. $1,000
d. $3,000
e. $4,000
