Max owns 245 shares of Cedar Corporation common stock, purchased during the prior year: 125 shares on July 5, for $15,000; and 120 shares on October 15, for $18,000. When Max sells 80 shares for $16,000 on July 18 of the current year, he does not identify the particular shares sold. Determine the amount and character of the gain.

Using the FIFO method Max will recognize ( ) of $( )