(1)This section applies if trading stock of a company’s trade is appropriated by the company for any other purpose.
(2)In calculating the profits of the trade—
(a)the amount which the stock appropriated would have realised if sold in the open market at the time of the appropriation is brought into account as a receipt, and
(b)the value of anything in fact received for it is left out of account.
(3)The receipt is treated as arising on the date of the appropriation.