Which of the following statements is false?

A.The IRS has ruled that a developer is permitted to include in the basis of parcels sold the allocable share ofESTIMATED costs of common improvements even if they have not yet been incurred or paid by the developer, and without regard to the economic performance requirements of IRC461(h).

B.The basis of subdivided lots generally includes a pro-rataportion of the costof developing the parcel to make it suitable for subdivision as long as the apportionment takes into account any differences in relative fair market values.

C.The costs of improvements made by a developer for roads and utilities may be added to the basis of parcels sold when thedeveloper retainscontrol of the improvements and commerciallyexploits themas a separate business.

D.All of the above statementsare true.