Cash 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

Question 1 options:

A)	$0 gain or loss.

B)	$1,000 capital gain.

C)	$4,000 capital gain and $1,000 Sec. 1231 gain.

D)	$5,000 capital gain.