Kate Subdivides Land Held as an Investment and Section 1237

question 70

Multiple Choice

Kate subdivides land held as an investment and Section 1237 is satisfied.The lots sell for $30,000 per lot (basis $10,000) .Kate sells five lots in the first year.Kate's ordinary income is

• A)$0.
• B)$20,000.
• C)$100,000.
• D)$150,000.