Jim Cash, one of two equal partners, contributed business property with a basis to him of $15,000 and a fair market value of $10,000 to the partnership of which he was a member. His capital account was credited with $10,000. The property later was sold for $16,000. As a result of this sale, how much gain or loss is allocable to Jim?

a. $1,000 loss

b. $1,000 gain

c. $500 gain

d. $6,000 loss

e. None of the above