Sadie sold 10 shares of stock to her brother, George, for $560 16 months ago. Sadie had purchased the stock for $720 two years earlier. If George sells the stock for $880, what are the amount and character of his recognized gain or loss in the current year?

• None of the choices are correct.

• $320 short-term capital gain.

• $160 long-term capital gain.

• $160 short-term capital gain.