Question: on june 1 20x13 gary gave gertrude a gift of...
On June 1, 20X13, Gary gave Gertrude a gift of stock worth $10,000, paying no gift tax on the transaction. Gary had purchased the stock for $7,500 in 20X11. On October 1, 20X13, Gertrude sold the stock to an unrelated party for $11,000. What is the amount and character of Gertrude’s gain upon the sale?
a. $1,000 short-term capital gain
b. $3,500 long-term capital gain
c. $1,000 long-term capital gain
d. $3,500 short-term capital gain