Required: Situation 1 Kerry received property from an aunt with a FMV of $61,200 on the date of the gift. The aunt had purchased the property five years ago for $53,400. Kerry sold the property for $64,000. a. What is the basis to Kerry? b. What is Kerry's gain on the sale? c. If Kerry is in the 37% tax bracket, what is the tax on the gain (assuming there are no other gains or losses to be netted)? d. If Kerry is in the 24% tax bracket, what is the tax on the gain (assuming there are no other gains or losses to be netted)? Situation 2 Kerry received property from an aunt with a FMV of $39,400 on the date of the gift. The aunt had purchased the property five years ago for $47,200. a. If Kerry sold the property for $55,675, what is the gain or loss on the sale? b. If Kerry sold the property for $44,915, what is the gain or loss on the sale? c. If Kerry sold the property for $37,115, what is the gain or loss on the sale?