(a) Identify any TWO conditions that is sufficient to establish the existence of an

adventure or concern in the nature of trade.

(b) State, with reasons, whether the gain derived in the following circumstance is

taxable:

Investment Sdn Bhd was incorporated on 01.11.2018 as an investment holding

company. On the same day, the company acquired quoted shares using

proceeds from its share capital.

Three months later, due to favourable stock market conditions, these shares

were disposed of for a gain. The proceeds from the sale were then used to

acquire other quoted shares. To acquire additional shares, the company

obtained borrowing from banks.

During the year ended 31.10.2019, the company was involved in buying and

selling quoted shares on ten occasions. The company made a total gain of

RM1.5 million, which was reflected as an extraordinary gain in its audited

accounts.