A lessor is paid $45,000 by its commercial tenant as a lease cancellation fee. The tenant wanted to get out of its lease so it could move to a different building. The lessor had held the lease for three years before it was canceled. The lessor had a zero tax basis for the lease. The lessor has received:

a.Long-term capital gain of $45,000.

b.Short-term capital gain of $45,000.

c.Ordinary income of $45,000.

d.Neither gain nor loss.