1. This year (2020), Nick sold some qualified small business stock that he acquired on January 2, 2009. His basis in the stock was $250,000 and he sold it for a $100,000 gain. How much of Nicks gain is taxable?

2. Winnie suffered a serious illness and was admitted to a nursing home for 75 days. Nursing home charges, including physician fees and other related expenses were $26,750. Under Winnie's long-term care insurance contract, she received reimbursements of $27,500. How much of the $27,500 reimbursement must be included in Winnie's gross income in 2020?