Tamiko buys a painting from a collector for resale in her gallery for $3,500. She sold it 15 months later for $5,500. What are the nature and amount of the gain on the sale of the painting?
A) $2,000 Section 1245 gain.
B) $2,000 ordinary income.
C) $2,000 Section 1231 gain.
D) $2,000 gain subject to 28% collectibles tax rate.
Correct Answer:
Verified
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