Yong contributes a machine having an adjusted basis of $20,000 and an FMV of $25,000 for a 10% partnership interest. Yong had taken $10,000 of depreciation prior to the contribution. The partnership has no liabilities. As a result of the contribution, Yong must recognize...? Please show your work! (Include all math)

	no gain or loss.
	a $5,000 Sec. 1245 gain.
	a $5,000 capital gain.
	$10,000 ordinary income.