Required: Discuss whether the sale of the land will generate ordinary income (4 marks).

Furniture Pty Ltd used to be a furniture manufacturer, but due to cheap imports has now ceased manufacturing activities, and is now a furniture importer. The premises containing their actual factory was sold off a few years ago, but Furniture still owns an adjacent large piece of vacant land, formerly used as an employee car park. When it bought the land the land it was motivated equally by the dual intentions of providing parking spaces to its employees as well as being able to make money from any future appreciation in the land value. In the current year, Furniture subdivides this land and sells it (using a real estate agent) to a property developer.

Using relevant Australian law to support answer