LO.2 Celia was the owner of vacant land that she was holding for investment. She paid $1 million for the land in 2005. Ichiro was an investor in vacant land. He thought Celia’s land might be the site of an exit ramp from a new freeway. Ichiro gave Celia $420,000 for an option on her land in 2008. The option was good for two years and gave Ichiro the ability to purchase Celia’s land for $4,765,000. The freeway was not approved by the government, and Ichiro’s option expired in 2010. Does Celia have $420,000 of long-term capital gain upon the expiration of the option?