LO.3 On January 2 of the current year, Fenton and Myers form the FM LLC. Their contributions to the LLC are as follows. Adjusted Basis Fair Market Value From Fenton: Cash Accounts receivable Inventory From Myers: Land $ 50.000 -0- 25,000 $ 50,000 90,000 60,000 250,000 200,000 FM originally intended to hold the inventory as investment property. Myers held the land as long-term investment property, but FM will use it in its business as a $ 1231 asset. Within 30 days of formation, FM collects the receivables. Two years later, FM sells the inventory contributed by Fenton for $60,000 cash. After three years, FM sells the land for $200,000. How much income does FM recognize from these transactions, and what is its character? Why does this result apply