The XYZ partnership has the following balance sheets: Basis FMV Land $40,000 $52,000 Inventory $20,000 $40,000 Unrealized Rec. $0 $25,000 Liabilities $12,000 $12,000 Capital, X $16,000 $35,000 Capital, Y $16,000 $35,000 Capital, Z $16,000 $35,000 $60,000 $117,000 If partner X (1/3 partner) sells his partnership interest (holding period = two years) to W for $30,000 cash, how much income will X recognize, and what will be its character?