Prior to the adjusting process, accrued expenses have:

A) not yet been incurred, paid, or recorded

B) been incurred, not paid, but have been recorded

C) been incurred, not paid, and not recorded

D) been paid but have not yet been incurred

Barry owns a 50 percent interest in b& b interests, a partnership. his brother, benny, owns a 35 percent interest in that same partnership, and the remaining 15 percent is owned by an unrelated individual. during 2016, barry sells a rental property with a basis of $60,000 to b& b interests for $100,000. the partnership intends to hold the rental as inventory for resale. what is the amount and nature of barry’s gain or loss on this transaction?