Match the following independent descriptions as "hot" (i.e., ordinary income-producing) or nonhot assets with the statements below.

Inventory with a basis of $10,000 and a fair market value of $15,000.

Marketable securities (not held as inventory).

Cash basis accounts receivable.

Installment receivables for sale of a capital asset.

Highly appreciated land held by the partnership for the purpose of subdividing and selling lots.

Inventory with a basis of $10,000 and a fair market value of $10,500.

Please select from below one option for each description mentioned above:

a. Hot assets for purposes of distributions, liquidation of a partnership interest under section 736, and sale of a partnership interest.

b. May be a hot asset for some but not all the purposes stated in (a).

c. Not a hot asset.