The BLM LLC's Balance Sheet on August 31 Reads as Follows

Multiple Choice

The BLM LLC's balance sheet on August 31 reads as follows. $\begin{array}{lrr}&\text { Adjusted } & \\&\text { Basis } & \text { FMV } \\\text { Cash } & \$ 60,000 & \$ 60,000 \\\text { Receivables } & -0- & 150,000 \\\text { Capital assets } & \underline{90,000} & \underline{300,000} \\& \$ 150,000 & \$ 510,000\\\\\text { Nonrecourse debt } & \$ 90,000 & \$ 90,000 \\\text { Barney, capital } & 20,000 & 140,000 \\\text { Lillie, capital } & 20,000 & 140,000 \\\text { Marshall, capital } &{20,000}& \underline{140,000} \\&{\$ 150,000} & \$ 510,000\end{array}$ The nonrecourse debt is shared equally among the LLC members. On that date, Lillie sells her one-third interest to Robyn for $170,000, including cash and relief of Lillie's share of the nonrecourse debt. Lillie'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 Lillie recognize on the sale?

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) $150,000 capital gain? $50,000 ordinary income
E) $70,000 capital gain? $50,000 ordinary income.