Several years ago Nicolas, a timber dealer, purchased a tract of land with a substantial stand of trees on it. The land cost $8,000, and the timber cost $250,000. On the first day of 2021, the timber was appraised at $325,000. In August 2021, Nicolas cut the timber and sold it for $360,000. Nicolas elects to treat the cutting as a sale or exchange under § 1231. What is the amount and character of Nicolas’s gain or loss?