Randolph is a 30 percent partner in the RD Partnership. On January 1, RD distributes $19,500 cash and inventory with a fair value of $32,400 (inside basis of $16,200) to Randolph in complete liquidation of his interest. RD has no liabilities at the date of the distribution. Randolph's basis in his RD Partnership interest is $38,375. What is the amount and character of Randolph's gain or loss on the distribution