Nicholas is a 25% owner in the DDBN LLC (a calendar year entity). At the end of the last tax year, Nicholass basis in his interest was $50,000, including his $20,000 share of LLC liabilities. On July 1 of the current tax year, Nicholas sells his LLC interest to Anna for $80,000 cash. In addition, Anna assumes Nicholass share of LLC liabilities, which, at that date, was $15,000. During the current tax year, DDBNs taxable income is $120,000 (earned evenly during the year and allocated using the monthly proration method). Nicholass share of the LLCs unrealized receivables is valued at $6,000 ($0 basis). At the sale date, what is Nicholass basis in his LLC interest, how much gain or loss must he recognize, and what is the character of the gain or loss?