(1)This section applies if—
(a)trading stock of a trade has been acquired otherwise than in the course of the trade, and
(b)section 158 does not apply.
(2)In calculating the profits of the trade—
(a)the cost of the stock is taken to be the amount which it would have realised if sold in the open market at the time of the acquisition, and
(b)the value of anything in fact given for it is left out of account.
(3)The cost is treated as being incurred on the date of the acquisition.
(4)This section is subject to section 161.