Question 13 Preston purchases 1,000 shs of BIG Corp on April 1, 20x1 for $2,500 She sells short 1,000 shs of BIG Corp on December 1, 20x1, for $3,750. This short sale results in a constructive sale. She closes the short sale on January 15, 20x2, by purchasing & delivering 1,000 shs of BIG Corp for $3,250. She sells the original position on December 15, 20x2 for $3,000. What is the amount and character of taxable income that Preston must recognize in 20x2? $1,000 short-term capital gain a. b. $1,000 short-term capital loss O c. $500 short-term capital gain & $500 long-term capital gain O d. $250 short-term capital loss