Chris wants to purchase manufacturing equipment from Owl LLC but he is a little short on cash and cannot get a loan from a bank. Owl LLC is willing to finance the purchase and the agreed that Chris will purchase the equipment for $350,000 (this is considered an installment sale). Chris will pay $50,000 down and $60,000 per year for the next five years plus interest. The sale closed in 2015 and Chris paid the $50,000 per the agreement plus interest. No other principal was paid. Owl originally purchased the equipment on 4/12/2012 for $300,000 and it has an adjusted tax basis of $200,000. What will Owl recognize as a gain in 2016 and what is the character of the gain?