[12] On January 1, Year 3, Susan transferred land she had originally acquired on June 21, Year 1, to Corporation K in a nontaxable exchange for Ks stock. The land had a FMV of $25,000 and an adjusted basis of $12,000. On September 1, Year 3, Corporation K sold the property that it held for investment purposes for $27,000. The amount and character of the gain recognized by Corporation K is

A. $2,000 long-term capital gain.

B. $15,000 short-term capital gain.

C. $15,000 long-term capital gain.

D. $2,000 short-term capital gain.