Leslie Buys a Painting from a Collector for Resale in Her

Multiple Choice

Leslie buys a painting from a collector for resale in her gallery.She purchased the painting for $5,000 and sold it 24 months later for $9,000.What are the nature and the amount of the gain on the sale?

A) $4,000 gain subject to 28% tax rate.
B) $4,000 Section 1245 gain.
C) $4,000 ordinary income.
D) $5,000 ordinary gain and $4,000 Section 1231 gain.