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QUESTION 1 Coconut Essence is a retailer of coconut water. It has been storing its stock in a warehouse. Ten years after they bought the warehouse, the company sells its warehouse. Coconut Essence imports and sells six products, including coconut water, coconut oil, coconut ice cream, coconut chips, coconut marshmallows and coconut juice. A major competitor pays Coconut Essence $2.5 million to stop importing and selling coconut water, which is its top-selling product. At the end of the 2023-24 income year, Coconut Essence decides to accept a $4 million offer from another competitor to stop importing and selling its remaining five coconut products. As there were no more products left to sell, Coconut Essence ceased its business operations. Required: Taking the above transactions independently, briefly discuss whether the mentioned amounts would be treated as income or capital for the 2023-24 tax year, citing relevant legislation and case law to support your answetr. (6 MARKS)