USE THE FOLLOWING INFORMATION FOR QUESTIONS 14-15. On May 1 Year 1, Ally was admitted to the AB partnership. Ally's contribution to capital consisted of 500 shares of stock in Dark Corporation, purchased in Year 0 for $20,000, and which had a fair market value of $100,000 on May 1, Year 1. Ally's interest in the partnership's capital and profits is 25%. On May 1 , Year 1, the fair market value of the partnership's net assets (after Ally was admitted) was $400,000. 14. What was Ally's gain on the exchange of the Dark stock for Ally's partnership interest? a. $0. b. $80,000 ordinary income. c. $80,000 long-term capital gain. d. $80,00$1231 gain. 15. On June 1, Year 3, the partnership distributed the 500 shares of Dark stock to partner Kate. The fair market value of the stock on the data of distribution was $80,000. What is Ally's recognized gain on the distribution? a. $0. b. $17,500. c. $70,000. d. $80,000