Choate, Hamm, and Sloan Partnership is a cash method partnership. The partnership's balance sheets at September 30 of the current year were as follows:

Assets Basis FMV

Cash 12,000 12,000

Accounts Receivable --0-- 48,000

Land Assets 83,000 90,000

Total $95,000 $150,000

Equities Basis FMVa

Notes Payable 60,000 30,000

Choate, Capital 15,000 40,000

Hamm, Capital 15,000 40,000

Sloan, Capital 15,000 40,000

Total $95,000 $150,000

If Choate withdraws under an agreement whereby he takes one-third of each of the three assets and assumes $20,000 of the notes payable, what gain or loss should he report for tax purposes?