Which of the following statements regarding investments in real property is TRUE?

An investor in undeveloped land must capitalize interest expense incurred to purchase the land to tax basis rather than taking an annual tax deduction
		Gain on the sale of investment land is treated as ordinary gain, unless the taxpayer is engaged in a business for which the land is treated as inventory
		Improvements made to undeveloped land and subdivision of a large tract into smaller parcels are factors supporting the conclusion that a taxpayer is engaged in a business and the land is inventory rather than a capital asset
		Rental income received from an investment in rental real estate is treated as capital gain