3.3 Partnership ABC, an equal general partnership, is a dealer in real estate which subdivides and sells building lots in a residential suburb. Its balance sheet and the fair market values of its aseato own nn f n11....-. vil euly 20 , year 6 , the partnership distributes Lot 1 , which it purchased for cash on May 27, year 1, to C in liquidation of her partnership interest. The building lots in the subdivision continue to appreciate in value, and on August 25, year 9, C, who holds Lot 1 as a capital asset, sells it for $65,000 to a family who wants to build a home there. What are the tax consequences of this sale to C? a) $15,000 ordinary income b) $25,000 ordinary income c) $25,000 ordinary loss d) $10,000 ordinary income and $15,000 capital gain 3.3 Partnership ABC, an equal general partnership, is a dealer in real estate which subdivides and sells building lots in a residential suburb. Its balance sheet and the fair market values of its aseato own nn f n11....-. vil euly 20 , year 6 , the partnership distributes Lot 1 , which it purchased for cash on May 27, year 1, to C in liquidation of her partnership interest. The building lots in the subdivision continue to appreciate in value, and on August 25, year 9, C, who holds Lot 1 as a capital asset, sells it for $65,000 to a family who wants to build a home there. What are the tax consequences of this sale to C? a) $15,000 ordinary income b) $25,000 ordinary income c) $25,000 ordinary loss d) $10,000 ordinary income and $15,000 capital gain