(5 points) Edward Chance sold his 1/3 interest in CCS Partnership to Greg Randall for $112,000 cash on January 1, 2022. Chances basis in the partnership interest was $90,000 on the date of the sale. An analysis of the financial records of the partnership revealed the following:

Asset A/B FMV

Accounts Receivable $0 $15,000

Inventory $80,000 $89,000

Equipment $190,000 $232,000

What is Chances recognized gain on the sale of his partnership interest?

What is the character(s) of his gain on the sale?