In Jan. Lance sold stock with a cost basis of $26,000 to his brothe, James for $24,000, the fair market value of the stock at the time of sale. Five…

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In Jan. Lance sold stock with a cost basis of $26,000 to his brothe, James for $24,000, the fair market value of the stock at the time of sale. Five months later, James sold same stock for $27,000. What is the tax effect of these transactions?

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