Walter sells his 40 percent interest in Kennel Kids Playground with a partnership basis interest of $40,000 to George for $60,000. The partnership has the following assets: Cash = $50,000, inventory ($20,000 basis, $60,000 fair market value), and land ($30,000 basis; $40,000 fair market value). What are the tax effects of this sale on Walters taxable income?