Hemi and Walters are equal partners in the HW Partnership. The partners contributed cash to form the partnership several years ago. Prior to any distributions, the partners each have a $50,000 basis in their partnership interests. On December 31, the partnership makes a pro-rata operating distribution to Walters of $45,000 cash and stock with a fair value of $20,000 (inside basis of $8,000). What is the amount and character of Walters' recognized gain or loss? What is Walters' remaining basis in HW?