Reggie purchased 100 shares of SportsFan, Inc. five years ago for $5,000. He just gave those shares to his son, R.J, and the value of the 100 shares of stock on the date of the gift was $1,000. Which of the following statements is true?
If R.J. subsequently sells the shares of SportsFan, Inc. for $5,500, the basis used to calculate his gain or loss will be $1,000.
If R.J. subsequently sells the shares of SportsFan, Inc. for $750, the basis used to calculate his gain or loss will be $1,000.
If R.J. subsequently sells the shares of SportsFan, Inc. for $750, the basis used to calculate his gain or loss will be $5,000.
If R.J. subsequently sells the shares for $5,500, he will not have any gain or loss.