Which of the following includes income from real estate classified as capital as

Which of the following includes income from real estate classified as capital assets?
(A)   Passive income
(B)   Active income
(C)   Portfolio income
(D)   Passive activity income

A property that produces a first year NOI of $80,000 is purchased for $750,000.  The NOI is expected to increase by 15% in the sixth year when some of the leases turnover.  The resale price in year 10 is expected to be $830,000.  What is the net present value of the property based on the 10-year holding period and a discount rate of 9.5%?

(A)   $87,433
(B)   $87,221
(C)   $95,294
(D)   $116,490


The adjusted basis can be defined as:
(A)   Original cost + capital improvements - accumulated depreciation
(B)   Sales price - mortgage balance - sales costs
(C)   Sales price - accumulated depreciation
(D)   Original cost - mortgage balance - sales costs