In 20X1, John and Justin form a partnership and agree to share profits and losses equally. John contributes cash of $100,000 and Justin contributes property (a capital asset) with an FMV of $100,000 and an adjusted basis of $60,000. During 20X3, the partnership sells the property, which is a capital asset in the hands of the partnership, for $150,000. Which of the following statements is correct regarding the 20X3 tax year?
a. Justin would be allocated $65,000 of the gain
b. Justin would be allocated $50,000 of the gain
c. Justin would be allocated $45,000 of the gain
d. Justin would be allocated $25,000 of the gain