The BLM LLC's balance sheet on August 31 reads as follows

	Adjusted
	Basis	FMV
Cash	$ 60,000	$ 60,000
Receivables	0	150,000
Capital assets	90,000	300,000
	$150,000	$510,000
Nonrecourse debt	$ 90,000	$ 90,000
Barney, capital	20,000	140,000
Lillie, capital	20,000	140,000
Marshall, capital	20,000	140,000
	$150,000	$510,000

The nonrecourse debt is shared equally among the LLC members. On that date, Lillie sells her one-third interest to Robyn for $170,000, including cash and relief of Lillie's share of the nonrecourse debt. Lillie's outside basis for her interest in the LLC is $50,000, including her share of the LLC's debtand after allocation of Lillie's share of income for the period. How much capital gain and/or ordinary income will Lillie recognize on the sale?

a. $100,000 capital gain; $50,000 ordinary income.

b. $120,000 capital gain; $0 ordinary income.

c. $150,000 capital gain; $0 ordinary income.

d. $70,000 capital gain; $50,000 ordinary income.