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?

Understand the components and structure of the balance of payments.

Analyze the effects of current account deficits or surpluses on the capital and financial accounts.

Identify and interpret the key entries in balance of payments tables.

Understand the role and impact of imports and exports on national accounts.