On September 20 of Year 1, Sean purchased 1,000 shares of Austin Enterprises, Inc.

common stock for $25,000. He sold the shares for $35,000 on September 20 of Year 2.

Which of the following statements correctly identifies the tax consequences of this transaction?

a. Sean will recognize a $10,000 ordinary gain on the sale.

b. Sean will recognize a $10,000 short-term capital gain on the sale.

c. Sean will recognize a $10,000 long-term capital gain on the sale.

d. Sean will not be required to recognize the gain on the transaction.