Question: On June 1, 2015, Heloise gave Henrietta a gift of stock worth $10,000. Heloise had purchased the stock on January 1, 2015 for $13,000. Henrietta

On June 1, 2015, Heloise gave Henrietta a gift of stock worth $10,000. Heloise had purchased the stock on January 1, 2015 for $13,000. Henrietta sold the stock to an unrelated party on January 1, 2016 for $13,500. What is the amount and character of Henrietta's gain or loss upon the sale?
a. $500 short-term capital gain
b. $3,500 short-term capital gain
c. $500 long-term capital gain
d. $3,500 long-term capital gain

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