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I got # 1 an 2 correct I need the answer with the explanation for calculation tax on gain (#3 an # 4 ?) please
I got # 1 an 2 correct I need the answer with the explanation for calculation tax on gain (#3 an # 4 ?) please explain the calculation of tax using 2020 tax rules the basis to Clara is $30000 and the gain $ 7000 are correct
Problem 7-57 (LO 7-6)
Using the following independent situations, answer the following questions:
Required: Situation #1 Clara received from her Aunt Sona property with a FMV at the date of the gift of $36,000. Aunt Sona had purchased the property five years ago for $30,000. Clara sold the property for $37,000.
- What is the basis to Clara?
- What is Claras gain on the sale?
- 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)?
- 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)?
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