PLease answer only first one with explanation thanx Ben Baker purchased Ajax Company stock five years ago for $9,000, which he gave (gift)to Anne Able at a time when the stock's market value was $12,000. Subsequently, Anne sold3.the stock for $13,000. What will be the amount of Anne's gain or loss on the sale?A$3,000 gainB1,000 gain4,000 gainO gain or lossE None of the aboveDIn 2021, Russell Rogers is single with net investment income of $18,000 and modifiedadjusted gross income of $270,000. What is the amount of Russell's net investment incometax for the year?4.A$ 2,660BC680D760ENone of the aboveJudith Jones, single, reports four sales of capital assets during 2021, as set out below.Long-term capital gain5.$4,00012,000Long term capital lossShort term capital lossShort term capital gain1,0002,000Taxpayer's only other income for the year is salary of $80,000. What is Judith'sadjusted gross income for the year?$80,00073,000A86.000D70,000ENone of the aboveSpouses, Chip and Carrie Carson, purchased a principal residence in Richmond for$375,000 on August 1, 2020. Carrie obtained a job in Boston, and 14 months later,they sold their home in Richmond for $650,000 and moved to Boston. How much gain,if any must Chip and Carrie recognize on their 2021 joint federal income tax return?6.A$500,000B275,000D160,420ENone of the aboveOn May 1, 2021, Maggie Mays (cash basis) leases property she owns to Tommy Thompsonfor rent of $1,000 per month. Tommy pays Maggie $1,000 as a damage deposit which will bereturned at the end of the lease term. In addition, Tommy pays Maggie $2,000 as advance7.rent which is to be applied to rent for the last two months (March and April, 2022) of thelease term. The lease runs for a one year period beginning on May 1, 2021. What is Maggie'srental gross income for 2021? Assume that Tommy also makes eight other $1,000 rentalpayments to Maggie (May - December, 2021) during 2021,A$10,0008,00011,0006,000BDENone of the above

The answer for the multiple choice question and relevant working are presented hereunder : Ben Baker…

3. Ben Baker purchased Ajax Company stock five years ago for $9,000, which he gave (gift) to Anne Able at a time when the stock's market value was $12,000. Subsequently, Anne sold the stock for $13,000. What will be the amount of Anne's gain or loss on the sale? $3,000 gain 1,000 gain 4,000 gain O gin or loss A B E None of the above