Phil’s father died on January 10, 2014. The father had owned stock for 20 years with a basis of $45,000. Phil inherited the stock on August 10, 2014, when the stock was worth $430,000. The stock was worth $566,000 at the date of the father’s death. Phil sold the stock for $545,000 net of commissions on November 23, 2014. What is the amount and nature of Phil’s gain or loss from disposition of this property?
a. Long-term capital gain of $500,000.
b. Long-term capital gain of $115,000.
c. Long-term capital loss of $21,000.
d. Long-term capital gain of $545,000.