Jangyoun sells investment land having a​ $30,000 basis to a partnership in which he has a​ 60% partnership

interest. The partnership pays​ $26,000 (FMV) for the land.​ Later, the partnership sells the investment land to a nonpartner for​ $31,000. On the sale of the​ land, the partnership must recognize a

A.

​$4,000 capital gain and​ $1,000 Sec. 1231 gain.

B.

​$5,000 capital gain.

C.

​$0 gain or loss.

D.

​$1,000 capital gain.

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