Scenario 1 Nathan purchased land in September 2016 for $250,000. Before bidding at the auction, he went to see an architect to draw plans for a shopping complex which he could then immediately sell for a $500,000 profit. Unfortunately, the zoning of the land was only residential so he could only receive council approval to build 3 townhouses, which he built and immediately sold for a profit of $50,000. Scenario 2 Suppose instead, Nathan planned to subdivide the land to build and sell 4 townhouses for a profit of $75,000. He purchased the land before getting council approval but was only permitted to build 3 townhouses. He built the 3 townhouses and immediately sold them for a profit of $50,000. Determine whether each of the scenarios are examples of ordinary income or capital receipts. O Scenario 2 is a capital receipt whilst scenario 1 is ordinary income. o Scenario 1 is a capital receipt whilst scenario 2 is ordinary income. O Both are capital receipts. O Both are ordinary income