A father makes a gift of XYZ stock to his daughter. Two years ago, the father purchased the stock for $5,000 and, at the time of the gift, the stock was worth $10,000. If the daughter sells the stock 10 months later for $12,000, what is the tax implication?
a) The daughter incurs a capital gain of $7,000
b) The daughter incurs a capital gain of $2,000
c) The daughter incurs a capital loss of $2,000
d) There is no tax implication for the daughter
