On June 1 of the current year, Kelly received a 10% interest in Rock Co., a partnership in for services contributed to the partnership. Rock's net assets at that date: had a basis of $70,000 and a fair market value of $100,000 In interest? A. $7,000 ordinary income. B. $7,000 capital gain. C. $ 10,000 ordinary income. D. $10,000 capital gain