Spencer has an investment in two parcels of vacant land. Parcel 1 is a capital asset and parcel 2 is a § 1231 asset. Spencer already has a short-term capital loss for the year that he would like to offset with capital gain. He has a § 1231 lookback loss that exceeds the gain from the disposition of either land parcel. Spencer wants to sell only one land parcel: each of them would yield the same amount of gain. The gain that would be recognized exceeds the short-term capital loss Spencer already has. Which of the following statements is correct?
A) Spencer will have a net capital loss no metter which land percel he sells
B) spencer will have a net capital loss if he sells parcel 2.
C) spencer will have a net capital loss if he sells parcei 1.
D) spencer will have a net capital gain if he sells either parcel 1 or parcel 2.
E) None of the above.
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