Harry Jenkins, a widower, owned 10 acres of land that he purchased in 1994 for $5,000 per acre. On the date of Harry's death, June 30, 2009, the land was valued at $10,000 per acre. Harry's only child is Elizabeth. If after inheriting the land, Elizabeth sells the property in 2011 for $200,000, which of the following statements correctly summarizes the potential federal tax consequences to Elizabeth?

Options:

Elizabeth's gain will be zero because she is Harry's sole heir

Elizabeth's gain will be $100,000

Elizabeth will be required to recognize a gain of $200,000 even though she is Harry's sole heir

Elizabeth's gain will be $150,000