When she retired at age 64, Lauren received a lump-sum distribution from her employer's stock bonus plan. The fair market value of the employer stock contributed to her account was $200,000 at the time of contribution. At the time of the distribution, the employer stock in Lauren's account had a fair market value of $300,000. Six months later, Lauren sold the stock for $310,000. Which of the following statements regarding the sale of Lauren's stock is(are) CORRECT?

1. The $300,000 distribution is taxed at the long-term capital gain rate.
2. Lauren has a $10,000 short-term capital gain when the stock is sold.
3. There was no income tax liability incurred when the stock was contributed to the plan.
4. The net unrealized appreciation (NUA) on the stock is $100,000.

Question 14 options:

I, II, III, and IV

IV only

II, III, and IV

I and II