1. During 2019, Lise Young acquired a six-unit apartment building for $350,000. While it was her intention to operate the building as a rental property, two months after her purchase she received an unsolicited offer to purchase the building for $400,000. She accepted the offer and sold the building.

1. Calculate the gain on the property

b. Should the gain be treated as a capital gain or as business income? Justify your conclusion.