The Pepper LLC's balance sheet on August 31 of the current year is 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
Tabasco, capital	20,000	140,000
Chili, capital	20,000	140,000
Cayenne, capital	20,000	140,000
	$150,000	$510,000

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

Group of answer choices

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.