[The following information applies to the questions displayed below.] Lonnie Davis has been a general partner in the Highland Partnership for many years and is also a sole proprietor in a separate business. To spend more time focusing on his sole proprietorship, he plans to leave Highland and will receive a liquidating distribution of $65,750 in cash and land with a fair market value of $113,500 (tax basis of $145,000 ). Immediately before the distribution, Lonnie's basis in his partnership interest is $415,000, which includes his $85,000 share of partnership debt. Highland Partnership does not hold any hot assets. W. What are the amount and character of Lonnie's gain or loss if he places the land into service in his sole proprietorship and then sells t13 months later for $120,000