Newton is a one-third owner of ProRite Partnership. Newton has decided to sell his interest in the business to Betty for $70,500 cash plus the assumption of his share of ProRites liabilities. Assume Newtons inside and outside basis in ProRite are equal. ProRite shows the following balance sheet as of the sale date:

		Tax Basis		FMV
Assets:
Cash	$	119,000		$	119,000
Receivables		39,000			39,000
Inventory		46,000			108,700
Land		34,750			15,750
Totals	$	238,750		$	282,450
Liabilities and capital:
Liabilities	$	60,000
Capital Newton		59,583
Barbara		59,584
Liz		59,583
Totals	$	238,750

What is the amount and character of Newtons recognized gain or loss? (Do not round intermediate calculations. Round your final answer to the nearest dollar amount.)