Ramez received shares of stock as a gift from a relative in 2020. At the time of the gift, the stock had a FMV of $5,000. The relative purchased the stock in 2018 and had a basis of $6,000. If the stock sells for $7,000 in 2022, Ramez will report a ________.
1) $2,000 capital gain
2) $1,000 capital gain
3) $1,000 ordinary gain
4) $2,000 ordinary gain