Eastfield Ltd operates various supermarkets in NSW. A few years ago Eastfield purchased some land hoping to use that land for one of its new supermarket stores. However, plans recently changed and the land in question was instead sold at a profit of $300,000. Is this $300,000 profit from selling land by Eastfield Ltd likely to be assessable as ordinary income?

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The Answer of Eastfield Ltd operates various supermarkets in NSW. A few years ago Eastfield purchased some land hoping to use that land for one of its new supermarket stores. However, plans recently changed and the land in question was instead sold at a profit of $300,000. Is this $300,000 profit from selling land by Eastfield Ltd likely to be assessable as ordinary income?

Eastfield Ltd Operates Various Supermarkets in NSW