Thuy bought a rental house in 2012 for $75,000. In 2020, she sells it for $86,000. Thuy properly deducted $22,000 in depreciation on the house before its sale.

a. What is the amount and character of the gain on the sale?

b. Thuy also sells the following securities:

Determine the amount of tax that Thuy will pay on her capital asset transactions. Assume that she is in the 35 percent marginal tax rate bracket.

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Security Purchase Date Sales Date Basis Sales Price Delphi Corporation Mondo, Inc. Horace Company 4/13/17 6/11/19 4/13/20 4/08/20 7/15/20 8/13/20 $ 3,000 12,000 14,000 $ 7,000 10,000 19,000