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Olivia wants to buy some vacant land for investment purposes. She cannot afford the full...

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Accounting

Olivia wants to buy some vacant land for investment purposes. She cannot afford the full purchase price. Instead, Olivia pays the landowner $39,800 to obtain an option to buy the land for $796,000 anytime in the next four years. Fourteen months after purchasing the option, Olivia sells the option for $49,750. What is the amount and character of Olivia's gain or loss?

She has a long term capital gain of $_______.

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