CANADA TAXATION QUESTIONS (2) GOVERNED BY CANADA INCOME TAX ACT AND CURRENT TAX LAWS

Question 16 5% During 2004, Jose Day acquired a four unit apartment building for $230,000. M"hile it was her intention to operate the building as a rental property, one month after her purchase she received an unsolicited offerto purchase the building for $280,000. She accepts the offer. Required: Should the $50,000 gain be treated as a capital gain or as business income?.