indicate whether the transaction should have generated a capital gain or income. Explain the basis for your conclusion

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 favourable 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.