On September 20 of Year 1, Rene purchased 1,000 shares of Carter Inc. common stock for $40,000. He sold the shares for $50,000 on September 20 of Year 2. Which of the following statements correctly identifies the tax consequences of this transaction?

• Rene will not be required to recognize the gain on the transaction.
• Rene will recognize a $10,000 ordinary gain on the sale.
• Rene will recognize a $10,000 long-term capital gain on the sale.
• Rene will recognize a $10,000 short-term capital gain on the sale.