Ten years ago, Yusuf, an art dealer, purchased a painting for $50,000. He believed the painter of the painting would become the next big artist and held on to the painting for years. Finally, Yusuf sold it last week for $1,050,000. How much and what kind of gain should Yusuf report on the sale of the painting?

1. $0
2. $1 million long term capital gain
3. $1 million ordinary income
4. $1 million short-term capital gain