The following facts apply to Collins, an individual:
In February of the current year, Hodge, who had owed a $5,000 personal debt to Collins for the past three years, declared bankruptcy.
Collins sold land held for investment for a $10,000 gain. The land had been purchased by Collins five years prior.
In July of the current year, Collins received shares of stock as a gift from Bellamy. Bellamy had purchased the shares in January of the current year. In November, Collins sold the stock for a gain of $3,000.
Considering only the above facts, what will Collins report on the current year tax return?
a. $2,000 long-term capital gain
b. $8,000 long-term capital gain
c. $10,000 ordinary income and $2,000 short-term capital loss
d. $10,000 long-term capital gain and $3,000 short-term capital gain