On January 15 of the current year, Kreutzer, an individual, received as an inheritance from Gladstone’s estate shares of stock worth $25,000. Gladstone had purchased the shares in June of the previous year for $20,000, and the shares were worth $25,000 at Gladstone’s date of death in November of the previous year. The executor of Gladstone’s estate did not elect to use the alternate valuation date. In March of the current year, Kreutzer sold the shares for $27,000. As a result of the sale, what is the amount and type of gain reported by Kreutzer?
a. $7,000 long-term capital gain
b. $2,000 short-term capital gain
c. $7,000 short-term capital gain
d. $2,000 long-term capital gain
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