On January 10, 2012, Wally Sold an Option for $2,000

question 52

Essay

On January 10, 2012, Wally sold an option for $2,000 on vacant land he held as an investment.He had purchased the land in 2008 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, 2012, 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:

Acceptable Behavior

Actions or conduct that are deemed appropriate, ethical, or desirable within a particular society or culture.

Inductive Reasoning

A logical process by which general conclusions are drawn from specific instances or observations.

Corporal Punishment

Use of physical force with the intention of causing pain but not injury so as to correct or control behavior.

Power Assertion

Disciplinary strategy designed to discourage undesirable behavior through physical or verbal enforcement of parental control.