Thomas owns a 25% interest in Five Star LLC. His has a $145,000 basis in the LLC at the end of the year, after accounting for the calendar year LLC's current operations. On that date, the LLC distributes $200,000 cash to Thomas in a proportionate current distribution. What is the amount of gain or loss recognized by Thomas as a result of the distribution and what is his basis in the LLC interest?

Answer:

Thomas recognizes a _____ gain/(loss) from the distribution and his basis in the LLC is reduced to____ .