8. In 20X3 Hunter contributed land held for investment to the Marky partnership in exchange for a 60% interest in partnership income and capital. Hunters basis in the land was $400,000 and its FMV at the time of the contribution was $600,000. In 20X7 Marky sold the land, which it held for investment, for $900,000.

Determine the gain and its character that Hunter must report due to the sale of the land by Marky.