Required information [The following information applies to the questions displayed below.] Ansel purchased raw land three years ago for $210,000 to hold as an investment. After watchihg the value of the land drop to $152,000, he decided to contribute it to Mountainside Developers LLC in exchange for a 5 percent capital and . profits interest. Mountainside plans to develo p the property and will treat it as inventory, like all the other real estate it holds. - b. If Mountainside sells the property for $120,000 after holding it for two years, how much gain or loss does it recognize, and what. is | the character of the gain or loss? ) . ; i P Ordinary loss 120,000 Capital loss 7 $ 58,000