Teresa purchased a necklace for $100 in 1964. In 2014, Teresa gave the necklace to her granddaughter, Lindsey. At the time of the gift, the necklace had an appraised value of $850. In 2016, Lindsey sold the necklace for $1,200. What is the amount and character of Lindsey's gain from this sale?

$350 ordinary gain.

$350 long-term capital gain.

$1,100 ordinary gain.

$1,100 long-term capital gain