Capital income arises from selling long-term assets, not everyday operations.

Steps:

• Define capital income as gains from disposing of capital assets like property or equipment, distinct from regular business earnings.
• Review each option to classify if it's from asset sales or operational activities.
• Eliminate options tied to ongoing income streams like interest, rent, or sales.
• Confirm the remaining option matches capital asset disposal.

Why B is correct:

• Proceeds from selling business premises qualify as capital income under accounting standards, as premises are fixed capital assets, not inventory.

Why the others are wrong:

• A: Bank interest is revenue income from investments, recurring and operational.
• C: Rental income is revenue from property use, not asset sale.
• D: Sale of inventory generates revenue income from core business trading.

Final answer: B