XYZ Corporation has 20 condominium units carried as part of its inventory. Which of the following statements is incorrect? Income from sale of these units is subject to normal corporate tax. Income from sale of these units is subject to final capital gain tax. Condominium units held by X Realty Corporation are ordinary assets of the corporation. Income from sale of these units are required to be reported in its annual income tax return.

SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter12: Corporations: Organization, Capital Structure, And Operating Rules
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XYZ Corporation has 20 condominium units carried as part of its inventory. Which of the following statements is incorrect?

Income from sale of these units is subject to normal corporate tax.

Income from sale of these units is subject to final capital gain tax.

Condominium units held by X Realty Corporation are ordinary assets of the corporation.

Income from sale of these units are required to be reported in its annual income tax return.

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