Carter Pty Ltd (Carter) is a company owned by Julie and Cameron Carter (equal 50% shareholding) and it makes its profit by offering building supplies at a discounted rate to house and land developers. It has been doing this since its incorporation in 2012. In July 2016 Carter purchased three adjacent blocks of land in a new development for $300,000 each, with the intention of building a high-rise development. Carter had never purchased land or engaged in construction of buildings before this. In December 2016 the Victorian Civil and Administrative Tribunal (VCAT) declared the high rise development proposed by Carter would be an “eyesore” that would “significantly impact on neighbour’s quiet enjoyment of their homes” and refused to grant a planning permit. Carter sought advice from their lawyer, Joe Dodgy, and based on his advice Carter contracted CC Design Pty Ltd to design and build three unique, but community-appropriate, homes for the three prime pieces of land, at a build value of $150,000 each. Legal fees in relation to all three properties amounted to a total of $30,000. Carter then sold the three properties for $1 million per property. Advertising fees amounted to $10,000 in total. Joe Dodgy told them that they would not have to pay any tax on the profits made from the sales since they were just merely realising the three blocks of land to the best of their value! Cameron is so happy with their building endeavours, that he gives Julie an antique dining table for their home as a bonus. Carter pays for the table at a cost of $20,000. Required: You work for the Australian Tax Office, and your supervisor asks you to prepare a memorandum with respect to the following issues: Discuss whether or not the profit from the sale of the three properties can be assessable as ordinary income to Carter? (Calculations are required). If not ordinary income, can the transactions with respect to the three properties be dealt with under the capital gains tax provisions? Explain how. (Calculations are required). Explain what the tax implications of the receipt of the antique table are for Julie (if any).