A shopping centre operations business pays $$100,000$ for a call option on a parcel of land intending to build and operate a new centre. However, it abandons its plans to own a new centre and sells the option to a land investment company for $$250,000.$

Whis is the better view?

Group of answer choices

The entire $$250,000$ is ordinary income from a business of trading in land.

All commercial gains are ordinary income.

The entire $$250,000$ is a capital receipt and not ordinary income. This is an extraordinary transaction outside the ordinary course of business and lacked a profit motive at the beginning.

The $$150,000$ profit is ordinary income. This is profit from an isolated commercial transaction that had a profit motive from the start.