Paul sells one parcel of land $($basis of $$100,000)$ for its fair market value of $$160,000$ to a partnership in which he owns a $60\%$ capital interest. Paul held the land for investment purposes. The partnership is in the real estate development business, and will build residential housing $($for sale to customers$)$ on the land. Paul will recognize: a$.$ $$0$ gain or loss. b$.$ $$60,000$ capital gain. c$.$ $$60,000$ ordinary income. d$.$ $$36,000$ ordinary income. e$.$ $$36,000$ capital gain. For this question, the solution was pointing out an interest rate? Where did it come from?