Ms. Imo, who is single, purchased ger 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 $385,000 and sold it for $700,000.

A. Compute is Imo's taxable gain on the 2000 sale and on this year's sale

B. Compute her income tax and medicare contribution tax on her gain this year if her marginal rate on ordinary income is 39.6 perccent.