7. Bonita received a bequest of one-hundred shares of XYZ stock from a relative who died of March 1 of this year. The relative bought the stock at a total cost of $5,500. The value of the one-hundred shares of stocks XYZ was $5,750 on March 1. On July 1, Bonita sells the stock for $6,250, incurring expenses for the sale $250. The taxable gain on the sale will be a:

1. $250 long-term capital gain
2. $250 short-term capital gain
3. $500 long-term capital gain
4. $500 short-term capital gain