Which of the following statements regarding real estate investment trusts are TRUE?
I. Hybrid REITs invest in both commercial property and residential property.
II. Some REITs hold no real property but hold mortgages on commercial property instead.
III. All dividend disbursements made by REITs will be recognized as qualified dividends by the IRS.
IV. Dividends are taxed at the investor's ordinary income tax rate.
A) I and III
B) II and IV
C) II and III
D) I and IV
Answer: B) II and IV