Katy received land as a gift from her grandfather. Her grandfather had bought the land as an investment five years ago. At the time of the gift, the land had a FMV of $85,000 and an adjusted basis of $110,000 to Katy's grandfather. Gift tax of $5,000 was paid on the transaction. After deducting the annual exclusion, the amount of the gift was $75,000. Less than one year later, Katy held the land as an investment and sold the land for $90,000. What was Katys gain or (loss) on this transaction (approximately)?

($20,000) LTCL

No gain or loss

($21,667) STCL

$20,000 STCG

$5,000 STCG