Emilio owns vacant land he is holding for investment.Two years ago he granted an option to purchase the land.The option grantee paid $25,000 for the option.This year the option expired unexercised.As a result, Emilio has:
A)A $25,000 long-term capital gain.
B)A $25,000 short-term capital gain.
C)A $25,000 ordinary gain.
D)No recognized gain or loss.
E)None of these.

Question

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The Answer of Emilio owns vacant land he is holding for investment.Two years ago he granted an option to purchase the land.The option grantee paid $25,000 for the option.This year the option expired unexercised.As a result, Emilio has:
A)A $25,000 long-term capital gain.
B)A $25,000 short-term capital gain.
C)A $25,000 ordinary gain.
D)No recognized gain or loss.
E)None of these.

Emilio Owns Vacant Land He Is Holding for Investment