An operator of a taxicab business decided to dispose of it as it had proved to be unprofitable. He was not able to obtain a favorable price for the business as a complete unit and, as a consequence, he decided to sell the individual cars. During the subsequent two year period, he engaged in over 40 transactions involving the cars, largely because some worn out cabs had to be replaced and some trade-ins were accepted. A profit was made on most transactions.

Please explain if this transaction should have created a capital gain or income?