Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This subsection applies to each item of * trading stock that the body disposes of to the company because the body ceases to exist.
(2) The body is taken to have sold, and the company is taken to have bought, the item (in the ordinary course of * business and dealing with each other at * arm's length), at the time of the disposal (or just before that time if the disposal occurred when the body ceased to exist), for:
(a) the * cost of the item for the body; or
(b) if the body held the item as * trading stock at the start of the income year, the * value of the item for the body then.
(3) The company is taken to have held the item as * trading stock when it bought the item.