On October 1, 2020 Bilbo Corporation sold 4000 shares of its $10 par value treasury stock for $60000. These shares were reacquired by Bilbo on January 2nd 2021 for $50000. For 2021 Bilbo should report:

short-term capital gain of $10000

long-term capital gain of $20000

long-term capital gain of $10000

neither income nor capital gain