LO 17-6 30. Ms. Imo, who is single, purchased her first home in 1991 for $85,000 and sold it in May 2000 for $178,500. She purchased her second home in July 2000 for S385,000 and sold it this year for $700,000. a. Compute Ms. Imo's taxable gain on the 2000 sale and on this year's sale b. Compute the income tax and Medicare contribution tax on her Page 17-26 gain this year if her preferential rate on long-term capital gain is 20 percent