On January 10,2010,Wally Sold an Option for $1,000 on Vacant

Essay

On January 10,2010,Wally sold an option for $1,000 on vacant land he held as an investment.He had purchased the land in 2006 for $66,000.The option allowed the option holder to purchase the property for $132,000 plus the cost of the option.On March 1,2010,the option holder exercised the option.What is the amount and nature of Wally's gain or loss from disposition of the land?