Clara received from her Aunt Sona property with a FMV at the date of the gift of $37,400. Aunt Sona had purchased the property five years ago for $31,300. Clara sold the property for $38,500.

a. What is the basis to Clara?

b. What is Clara's gain on the sale?

c. If Clara is in the 37% tax bracket, what is the tax on the gain (assuming she has no other gains/losses to be netted)?

d. If Clara is in the 24% tax bracket, what is the tax on the gain (assuming she has no other gains/losses to be netted)?

a. Basis of the property $ 31,300

b. Gain on sale $ 7,200

c. Tax on gain on sale ?

d. Tax on gain on sale ?