Big Profits Pty Ltd is a manufacturing business run in Western Australia recently decided to restructure the way it runs its business. Big Profits at the end of the Global Financial Crisis in 2008 purchased an extensive portfolio of banking shares as they were quite cheap at the time. AT the time of purchase the value of the share portfolio was no more than 10% of the total value of Big Profits and the Board thought diversifying risk was a good strategy. The current value of those shares has tripled since 2008. Big Profits decides to sell them all, making a very substantial profit. Are the profits from the sale of the shares the business income of Big Profits?
Yes
No