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Barbie, a real estate dealer, purchased two lots for $12,000 each in May 2006. On August 30, 2016, Barbie sold the tracts of land for

Barbie, a real estate dealer, purchased two lots for $12,000

each in May 2006. On August 30, 2016, Barbie sold the tracts of land for $20,000 each.

Compute the gain and describe how it will be treated on the tax return.

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