Problem $7-19($LO$.2)$

Carla was the owner of vacant land that she was holding for investment. She paid $$2,000,000$ for the land in $2021.$ Raymond was an investor in vacant land. He thought Carla's land might be the site of an exit ramp from a new freeway. Raymond gave Carla $$836,000$ for an option on her land in $2022.$ The option was good for two years and gave Raymond the ability to purchase Carla's land for $$4,765,000.$ The freeway was not approved by the government, and Raymond's option expired in $2024.$

Does Carla have $$836,000$ of long$-$term capital gain upon the expiration of the option?

$q,-$ Although Carla's vacant land is $q,$ asset, the expiration of the option is $$ asset.