Abby as a sole trader, she owns a private business. Her business lent Joe's business $100,000 at 3% annual interest rate.

Joe is Abby's friend. he ran a cloth shop (sole trader). He owned the retail store premises, as well as the land it was located on. However, a year after the loan was made, it became clear that the business could not repay the loan. As a result, Abby and Joe came to an agreement: in exchange for Abbys business forgiving the debt, Abbys business would take a 40% interest in the land that the premises were located on. This agreement also made it clear that the land would be sold in the near future. Consequently, the shop was demolished. Also, council plans were obtained to build an 8-storey apartment. This involved Abbys and Joes businesses paying a collective total of $40,000 for architect, lawyer and local council fees. The land was then sold to a developer for $1 million through a real estate agent.

Question: whether Abbies receipt of her share of the proceeds from the sale of the land constituted ordinary income (cite relevant rule from ITAA97 and case as well)