Question: 6) A Texas based hotel REIT with a total fair market value of $1,000 m operates a timeshare development and sale business through a TRS.

6) A Texas based hotel REIT with a total fair market value of $1,000 m operates a timeshare development and sale business through a TRS. The TRS has the following balance sheet: $100 m of construction in progress, $150 m of inventory for sale, $50 m in cash, and $110 m of debt owed to the hotel REIT. Does the TRS satisfy the 20% value test?

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