QUESTION 37 Rockwell owns sixty-five percent (65%) of the capital and profits interest of the RW Partnership Rockwell sells Land (Adjusted Basis of $40,000 and Fair Market Value of 560.000) to RW Partnership for $20,000 The partnership holds the Land as inventory for resale in the normal course of business. As a result of this transaction Rockwell has No Recognized Gain or Loss Capital Gain of $40,000 Ordinary Income of $40,000 Ordinary Income of $20,000 and Capital Gain of $20,000