Question 9 4 pts Angelo contributed land, which was being held for sale to Angelo's customers, to a partnership in exchange for a 20% interest. The partnership uses the land in its business for three years and then sells the property. When the property was contributed, it had a basis in Angelo's hands of $500,000 and an FMV of $600,000. The partnership sells the land for $700,000. The gain reported by the partnership is $100,000 of Sec. 1231 gain and $100,000 of capital gain. $200,000 of ordinary income. $200,000 of Sec. 1231 gain. $100,000 of ordinary income and $100,000 of Sec. 1231 gain