Question
Zed invested in a piece of land ten years ago when real estate prices were rising in his area and land values were expected to
Zed invested in a piece of land ten years ago when real estate prices were rising in his area and land values were expected to double within five years. The land remained vacant and was only used in 2005 when Joe was approached by a businessman to rent the land for two weeks for a local carnival for a fee of $2,500. In 2020 Zed sold the land for a significant sum of money($50K over the original cost),after posting an advertisement in a local newspaper.
Based on Zed 's primary intention for the land, how would you classify the gain on the sale of the land ?
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