39: Harry purchases stock for $300. When the value of the stock rises to $900, Harry sells stock to Wendy for $500. Question 40 options: (A) Harry is not taxed on any gain. (B) Harry is taxed on gain of $200 ($500 amount realized less $300 basis). (C) Wendy's Basis in the stock is $500 (what she paid for the stock) (D) Wendy's basis in the stock is $300 transferred basis from Harry. (E) B and C are true if Harry and Wendy are not married