William Lemay acquired a six unit apartment building for $315,000 with the intention of operating it as a rental property. Three weeks after his purchase, he received an unexpected offer to purchase the building for $387,000. He accepts the offer. Should the $72,000 be treated as a capital gain or as business income? Justify your conclusion.

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The Answer of William Lemay acquired a six unit apartment building for $315,000 with the intention of operating it as a rental property. Three weeks after his purchase, he received an unexpected offer to purchase the building for $387,000. He accepts the offer. Should the $72,000 be treated as a capital gain or as business income? Justify your conclusion.

William Lemay Acquired a Six Unit Apartment Building for $315,000