Steve is the proprietor of a sporting-goods business focusing on water sports. He bought a used motor boat for $4,000. He purchased the motorboat, then immediately sold it for a profit of $3,000. He did not use the boat at all. Which is the best treatment of this transaction?

a)The motorboat is a personal investment, and the sale results in a taxable capital gain.

b)The motorboat is a personal investment, and the sale results in property income.

c)The motorboat purchase is inventory as per the nature of his business, and the sale results in business income.

d)The motor boat is an investment as per the nature of his business, and the sale results in a taxable capital gain.