On January 10,2016,Wally Sold an Option for $2,000 on Vacant

question 18

Essay

On January 10,2016,Wally sold an option for $2,000 on vacant land he held as an investment.He had purchased the land in 2012 for $76,000.The option allowed the option holder to purchase the property for $122,000 plus the cost of the option.On March 1,2016,the option holder exercised the option.What is the amount and nature of Wally's gain or loss from disposition of the land?

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Definitions:

Return In Kind

The act of reciprocating or responding to a gesture or action with a similar one.

Immoral Actions

Behaviors that are considered to be wrong or unethical according to societal norms or personal ethical standards.

Unhappiness

A state of sadness, dissatisfaction, or general discontent.

Political Scientist

A social scientist who studies the theory and practice of politics, governmental policies, and political behavior.