On December 31, Kate Sells Her 20% Interest (With a Basis

On December 31, Kate sells her 20% interest (with a basis of $18,000 which, of course, includes a share of partnership liabilities) in the KLM Partnership to Karl for $27,000 cash plus assumption of her $6,000 share of liabilities. On that date, the partnership has the following balance sheet:
$$\begin{array} { | l | c | c | } \hline{ \text { Assets } } & \text { Basis } & \text { Fair Market Value } \\\hline \text { Cash } & \$ 30,000 & \$ 30,000 \\\text { Accounts receivable } & 0 & 20,000 \\\text { Inventory } & 15,000 & 25,000 \\\text { Land } & \underline { 45,000 } & \underline { 90,000 } \\\text { Total } & \underline { \$ 90,000 } & \$ 165,000 \\\hline\end{array}$$ $$\begin{array} { |l | c | c | } \hline { \text { Equities } } & \text { Basis } & \text { Fair Market Value } \\\hline \text { Notes payable } & \$ 30,000 & \$ 30,000 \\\text { Kate, capital } & 12,000 & 27,000 \\\text { Lynn, capital } & 24,000 & 54,000 \\\text { Mark, capital } & \underline { 24,000 } & \underline { \$ 4,000 } \\\text { Total } & \underline { \$ 90,000 } & \$ 165,000 \\\hline\end{array}$$ What are the amount and character of the gain that Kate must recognize on the sale?