Larry owned 35 shares of Flower Corporation stock for which he had paid $3,500. He sold this stock to his sister, Karen, for $3,000. Karen later sold this stock to her cousin, Joe, for $10,000. What is Larry's and Karen's recognized gain or loss, if any?
A) $0 loss for Larry and $6,500 gain for Karen
B) $0 loss for Larry and $7,000 gain for Karen
C) $500 loss for Larry and $7,000 gain for Karen
D) $0 for Larry and $0 for Karen