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Several years ago, Jan paid $25,000 for 1,000 shares of stock in ABC. During the current...

  1. Several years ago, Jan paid $25,000 for 1,000 shares of stock in ABC. During the current year ABC declares a two-for-one stock split. Shortly thereafter, Jan sells 500 shares of ABC stock for $18,000. Her recognized gain on the sale of the 500 shares is:

  • A. $0.

  • B. $11,750.

  • C. $5,500.

  • D. $9,000.

  • E. $7,500.

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