Mac Williams is married and files a joint return. Three years ago, at a cost of $30,000 he acquired stock in a corporation that qualified as a small business corporation, under § 1244. A few months after the stock was acquired and when it was still worth $30,000, he gave it to his brother, Bob Williams. Bob, who is married and files a joint return, sells the stock for $10,000 in the current year. Bob is your client and wants to know the tax treatment regarding the sale of the stock. Prepare a letter to this effect, and a memo to the file.