On July 1, John Smith owned stock (held for investment) purchased 2 years earlier at a cost

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Question:

On July 1, John Smith owned stock (held for investment) purchased 2 years earlier at a cost of $10,000 and having a fair market value of $7,000. On this date, he sold the stock to his son, Andie, for $7,000. Andie sold the stock for $6,000 to an unrelated person on November 1. How should Andie report the stock sale on his tax return?

As a short-term capital loss of $1,000.

As a long-term capital loss of $1,000.

As a short-term capital loss of $4,000.

As a long-term capital loss of $4,000.