Sol purchased land as an investment on January 12,2004 for $85,000.On January 31,2013,Sol sold the land for $90,000 cash.What is the nature of the gain or loss?

Question

Quizplus · Accepted Answer

The asset was held for more than one year, so it qualifies as a long-term capital gain. The gain is calculated as the selling price ($90,000) minus the purchase price ($85,000), which results in a gain of $5,000.

Sol Purchased Land as an Investment on January 12,2004 for $85,000.On