3. Two years ago, Vernon purchased 100 shares of Stairwell Refitters, Inc., a start-up com for $12,000. Unfortunately, Stairwell Refitter's business model did not perform as expe and the value of the shares has dropped to $8,000. Vernon's son, Dudley, recently realized large capital gain on an investment he held, so Vernon gave his shares of Stairwell Refitte Inc. to Dudley when they were worth $8,000. If Dudley sells the shares for $5,000 thirte months after the transfer, what is the amount and character of his gain or loss? a. $7,000 long-term capital loss. b. $7,000 short-term capital loss. C. $3,000 long-term capital loss. d. $3,000 short-term capital loss