Carol owns 50% of the capital interest in ABCPartnership and 50% of the profits interest in XYZPartnership. In Year 1, ABC sold land for $100,000 to XYZ, which XYZ uses in its trade or business. ABC's adjusted basis in the land at the time of the sale was $120,000. In Year 3, XYZ sold the land to an unrelated third party for $160,000. How much gain does XYZ recognize in Year 3

A. $20,000

B. $60,000

C. $40,000

D. $30,000