2. Mr. and Ms. Smiths partnership owns the following assets: Adjusted Basis Fair Market Value Accounts receivable $ 0 $ 60,000 Inventory 20,000 30,000 Machinery and equipment* 50,000 90,000 Buildings** 120,000 170,000 Land 80,000 140,000 $270,000 $490,000 * Potential 1245 recapture of $45,000. ** Straight-line depreciation was used. Mr. and Ms. Smith each have a basis for their partnership interest of $135,000. Calculate their combined recognized gain or loss and classify it as capital or ordinary if they sell their partnership interests for $500,000. a. $230,000 ordinary income. b. $230,000 capital gain. c. $115,000 ordinary income and $115,000 capital gain. d. $110,000 ordinary income and $120,000 capital gain. e. None of the above.