When Ronnie died seven months ago he left his prize art collection to his daughter Kate.

Ronnie had a fantastic eye for selecting artwork by unknown painters, buying the painting

cheap, and then selling them for a high profit once the painter was recognized by the general

public. Three months before his death, Ronnie purchased an enchanting oil painting of a

beautiful woman that Ronnie claimed would be $"$as famous as the Mona Lisa" for $$4,000.$

Kate has been exhibiting the painting since her father's death and a local art collector offered

her $$100,000$ for the painting. Kate is extremely excited because the painting was only valued

at $$15,000$ when her father died. If Kate sold the painting today, what would her taxable gain

be for income tax purposes.

$$85,000$ short term capital gain.

$$85,000$ long term capital gain.

$$96,000$ short term capital gain.

$$96,000$ long term capital gain.