Zayde is a 1/3 partner in the ARZ partnership with an outside basis of $156,000 on January 1. Zayde sells his partnership interest to Thomas on January 1st for $180,000 cash. The ARZ Partnership has the following assets and no liabilities as of January 1:

	Basis	FMV
Cash	$27000	$27000
Accounts Receivable	0	18000
Inventory	103500	121500
Equipment	270000	337500
Stock Investment	67500	96000
Totals	468000	600000

The equipment was purchased for $360,000 and the partnership has taken $90,000 of depreciation. The stock was purchased 3 year ago. What is the amount and character of Zayde's gain or loss on the sale of his partnership income?