Holly and Marcus Formed a Partnership

Holly and Marcus formed a partnership.Holly received a 50% interest in partnership capital and profits in exchange for contributing land (basis of $20,000 and fair market value of $100,000) .Marcus received a 50% interest in partnership capital and profits in exchange for contributing $100,000 of cash.Three years after the contribution date,the land contributed by Holly is sold by the partnership to a third party for $120,000.How much taxable gain will Holly recognize from the sale?

A) $50,000.
B) $90,000.
C) $100,000.
D) $120,000.
E) $0.

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