Sarah Malinga (a resident of the Republic) carries on business as a motor car dealer. On

1 June 2023, Sarah inherited R3 685 000 from his wealthy aunt. On 1 December 2023, he

sold his home situated in Musina for R950 000 (originally purchased for R350 000 on

1 October 2005) and purchased a larger home in Umhlanga. Sarah has never bought or sold

any other properties other than those mentioned above.

Required: Discuss (with reasons) whether the following is considered to be revenue or

capital in nature:

a) The inheritance of R3 685 000 (2 marks);

b) The proceeds from the sale of his home in Musina (7 marks).