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XYZ Limited owns and operates 235 rental apartment buildings in British Columbia, and has had these buildings for many years. In the current year, the
XYZ Limited owns and operates 235 rental apartment buildings in British Columbia, and has had these buildings for many years. In the current year, the company purchased a nower building for S50 million ininding to hold c building for many yars. I aer in thc year, management of XYZ was approached by a developer who had plans to add several amenities to the building and was willing to pay $60 million for it. The company had never sold one of its buildings before, but after much consideration, it was decided that the offer was exceptionally good, and XYZ sold the building just six months after it was purchased Is the profit fom this transaction more likely to be income or capital in nature? a) It is capital in nature because the intention was to hold the building for many years and the sale was unplanned b) It is income in nature because the intention was to hold the building for many years and the sale was unplanned. c) t is capital in nature because the developer is planning to add amenities to the building d) It is income in nature because the company has an inventory of buildings that are potentially for sale
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