Ronald and Roy formed an equal partnership, R&R Partnership, a general partnership, on January 2, 2012. Ronald contributed $100,000 in exchange for his one-half interest in R&R partnership. Roy contributed land worth $100,000 and with an adjusted basis to Roy of $30,000 in exchange for his one-half interest in the partnership. Roy is a real estate developer, and at the time of the contribution, the land was inventory in his hands. The land is a capital asset in the hands of R&R Partnership. If R&R Partnership sells the land in 2018 to an unrelated taxpayer for $180,000, how much gain will be recognized by R&R Partnership and what will be the character of the gain?

a. $80,000, all of which gain will be ordinary income

b. $150,000, all of which gain will be capital gain.

c. $150,000, all of which gain will be ordinary income.

d. $150,000, consisting of $80,000 capital gain and $70,000 ordinary income.