On December 31, Kate Receives a $28,000 Liquidating Distribution from the KLM

On December 31, Kate receives a $28,000 liquidating distribution from the KLM Partnership. On that date, Kate's basis in her limited partnership interest is $18,000 (which, of course, includes her share of partnership liabilities). The other partners assume her $6,000 share of liabilities. Just prior to the distribution, the partnership has the following balance sheet. Kate is leaving the partnership but the partnership is continuing.
$$\begin{array} { | c | c | c | } \hline { \text { Assets } } & \text { Basis } & \text { Fair Market Value } \\\hline \text { Cash } & \$ 30,000 & \$ 30,000 \\\text { Accounts receivable } & 0 & 20,000 \\\text { Inventory } & 15,000 & 25,000 \\\text { Land } & \underline { 45,000 } & \underline { 90,000 } \\\text { Total } & \underline { \$ 90,000 } & \$ 165,000 \\\hline\end{array}$$ $$\begin{array} { | l | c | c | } \hline { \text { Equities } } & \text { Basis } & \text { Fair Market Value } \\\hline \text { Notes payable } & \$ 30,000 & \$ 30,000 \\\text { Kate, capital } & 12,000 & 27,000 \\\text { Lynn, capital } & 24,000 & 54,000 \\\text { Mark, capital } & \underline { 24,000 } & \underline { \$ 4,000 } \\\text { Total } & \underline { \$ 90,000 } & \$ 165,000 \\\hline\end{array}$$ What is the amount and character of the gain that Kate must recognize on the liquidating distribution?