The December 31, 2016, Balance Sheet of DBW, LLP, a Service-Providing

Essay

The December 31, 2016, balance sheet of DBW, LLP, a service-providing partnership is as follows: $\begin{array}{lcc}&\text { Adjusted}\\&\text { Basis}&\text { FMV}\\\text { Cash } & \$ 180,000& \$ 180,000 \\\text { Receivables } & -0- &60,000\\\text { Capital assets } & 90,000 &120,000\\\text { Total } & \$ 270,000 &\$360,000\\\\\text { Dana capital } & \$ 90,000 & \$ 120,000 \\\text { Brooke, capital } & 90,000 & 120,000 \\\text { Whitney, capital } & 90,000 & 120,000 \\\text { Total } & \underline{\mathbf{\$ 2 7 0 , 0 0 0}} & \underline{\mathbf{\$ 3 6 0 , 0 0 0}} \end{array}$
The partners share equally in partnership capital, income, gain, loss, deduction, and credit. Capital is not a material income-producing factor to the partnership. On December 31, 2016, partner Dana (who is an active managing partner in the partnership) receives a distribution of $120,000 cash in liquidation of her partnership interest under § 736. Dana's outside basis for the partnership interest immediately before the distribution is $90,000. How much is Dana's gain or loss on the distribution and what is its character?