Marty is a 40% owner of MB Partnership. Marty has decided to sell his interest in the business to Emilio for $120,000 cash plus the assumption of his share of MB's liabilities. Assume Marty's inside and outside basis in MB are equal. MB shows the following balance sheet as of the sale date: Assets: Basis FMV Cash $160,000 $160,000 Receivables 45,500 45,500 Inventory 76,000 166,000 Land held for investment 59,500 50,000 Totals $341,000 $421,500 Liabilities and capital: Liabilities $130,000 Capital-Marty 84,400 -Barry 126,600 Totals $341,000 What is the amount and character of Marty's recognized gain or loss?