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LO4 Chelsea, who is single, purchases land for investment purposes in 2015 at a cost of $22,000. In 2020, she sells the land for $38,000.

LO4 Chelsea, who is single, purchases land for investment purposes in 2015 at a cost of $22,000. In 2020, she sells the land for $38,000. Chelseas taxable income without considering the land sale is $100,000. What is the effect of the sale of the land on her taxable income, and what is her tax liability?

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