If inventory that is contributed to the partnership in exchange for a partnership interest is sold, any gain or loss the partnership recognized is:

A.

ordinary income or loss to the extent of the contributing partner's built in gain or loss in the property at the time of the contribution,

B.

always ordinary income or loss.

C.

ordinary income or loss if the inventory is sold within five years of when it is contributed.

D.

determined based on the use of the property by the partnership.