Spencer Has an Investment in Two Parcels of Vacant Land

question 11

Multiple Choice

Spencer has an investment in two parcels of vacant land.Parcel 1 is a capital asset and parcel 2 is a § 1231 asset. Spencer already has a short-term capital loss for the year that he would like to offset with capital gain.He has a §
1231 lookback loss that exceeds the gain from the disposition of either land parcel.Spencer wants to sell only one land parcel: each of them would yield the same amount of gain.The gain that would be recognized exceeds the short-term capital loss Spencer already has.Which of the following statements is correct?

• A)Spencer will have a net capital loss no matter which land parcel he sells.
• B)Spencer will have a net capital loss if he sells parcel 2.
• C)Spencer will have a net capital loss if he sells parcel 1.
• D)Spencer will have a net capital gain if he sells either parcel 1 or parcel 2.
• E)None of these.

Learn the importance of closing refusal messages in a professional manner.

Comprehend the ethical implications of communication motives.

Recognize when to deliver bad news in person based on the situation and proximity of the affected individuals.

Understand the significance of anticipating the receiver's reaction in choosing the strategy for delivering bad news.

---

Definitions:

Herds and Crops

The management and cultivation of domesticated animals (herds) and plants (crops) for food, fiber, and other products beneficial to humans.

Food Foragers

Individuals or groups that gather, hunt, or fish for wild food resources as their primary means of sustenance.

Resource Allocation

Resource allocation involves the distribution of resources among competing groups or interests, a critical process in economics, business, project management, and within societies at large.

Peasants

Individuals engaged in small-scale agriculture or rural farming communities.