Gamila, James, Helen, and Carlos each owns an equal interest in GJHC Partnership, a calendar$-$year$-$end, cash$-$method entity. On January $1$ of the current year, James's basis in his partnership interest is $$73,750.$ For the taxable year, the partnership generates $$80,400$ of ordinary income and $$36,000$ of dividend income. For the first five months of the year, GJHC generates $$25,750$ of ordinary income and no dividend income. On June $1,$ James sells his partnership interest to Robert for a cash payment of $$83,500.$ The partnership has the following assets and no liabilities at the sale date:

Tax Basis FMV

Cash $ $38,500$ $ $38,500$

Land held for investment $83,500108,200$

Totals $ $122,000$ $ $146,700$

c$.$ If GJHC uses an interim closing of the books, what are the amount and character of James's recognized gain or loss on the sale?