Klaus is a 30 percent partner in the Red Partnership. On January 1, Red distributes $15,000 cash and inventory with a fair value of $20,000 (inside basis of $10,000) in a proportionate non-liquidating distribution. Klaus's basis in his Red Partnership interest is $27,000. What is the amount and character of Klaus's gain or loss on the distribution and Klaus's basis in the inventory and in Red Partnership after the distribution?