Tiffany owned a 2017 Ford Mustang Convertible that she received as a gift from her Aunt Renee. She called her car "Sally." Renee had purchased the car for $28, 900 and its fair market value at the date of the gift was $32,000. Tiffany parked the car in the parking lot at Costco and when she came back the car was gone. After investigation, her insurance company gave Tiffany $25,000 as a settlement. They subtracted depreciation.) Tiffany then bought a new Mustang (not convertible) for $23,000. What is the tax consequences to Tiffany of the Mustang transactions? Explain your answer fully