Tyson, a one-quarter partner in the TF partnership, receives a proportionate distribution to liquidate his partnership interest on January 1. The distribution consists of $70,000 cash and inventory with a fair value of $40,000 (inside basis is $22,000). Tyson’s outside basis is $90,000 including his $10,000 share of TF’s liabilities. What is the amount and character of Tyson’s recognized gain or loss? What is Tyson’s basis in the distributed inventory?