Subject of the questions is accounting and Federal income taxation based on Fundamentals of Federal Income taxation book (16,17 or 18 edition)

In Susie Salvatore v. Commissioner, 29 T.C.M. 89, Susie received a serivce station by devise and subsequently sold the serivce station to Texaco, Inc., (Texaco). Assume that originally, the serivce station was owned and operated by Suzie's husband, Thomas Salvatore, and he purchased the service station on MAy 17, 1995 for $35,000. Thomas died onOctober 7, 2013, when the fair market value of the property was $125,000. In April 2016, Suzie was contracted by Texaco, who offered to buy the service station for $400,000. Susie accepted the offer and entered into a binding earnest money agreement on June 18, 2016 which provided that the sale would be closed (title would pass) on Augest 1, 2016. On July 6, 2016, Susie conveyed an undivied 1/2 interest in the service station equally to her five children by a Deed of gift. On the date of the Deed of gift, the fair market value of the service station was $350,000. Upon the closing Texaco paid $200,000 to Susie and the balance of $200,000 in equal payments of $40,000 to each of Susie's five children. Susie and Thomas lived at all times in Moscow, Idaho, and three of the children lived in idaho, one in Florida, and one in Connecticut.

Required: What will be the income tax consequences, if any, to Susie and each of her five children from the above sale of the service station to Texaco.

Explain and support your answer, providing any necessary supporting calculations.

Space for computations - computations are required.