Haddow and Hurley Partnership was formed in May of the current year. Jeanne, an accountant, contributed services to form the partnership. She also contributed office equipment (with a basis of $10,000 and a FMV of $15,000). She received a 50% interest in the partnership. The FMV of Jeanne's partnership interest was $50,000. How much income does Jeanne recognize?

	a	$0
	b	$50,000 capital gain.
	c	$35,000 ordinary income.
	d	$35,000 ordinary income; $5,000 capital gain