Using the following independent situations, answer the following questions: Situation #1 Clara received from her Aunt Sona, property with a FMV at the date of the gift of $50,000. Aunt Sona purchased the property five years ago for $43,000. Clara sold the property for $52,000. Assume Aunt Sona does not have MAGI of over $200,000.

A. What is the basis to Clara?

B. What is Claras gain on the sale?

C. If Clara is in the 33% tax bracket, what is the tax on the gain (assuming she has no other gains/losses to be netted)?

D. If Clara is in the 15% tax bracket, what is the tax on the gain (assuming she has no other gains/losses to be netted)?

Situation #2 Clara received from her Aunt Sona, property with a FMV at the date of the gift of $33,000. Aunt Sona purchased the property five years ago for $40,000.

A. If Clara sold the property for $48,275, what is her gain or loss on the sale?

B. If Clara sold the property for $37,835, what is her gain or loss on the sale?

C. If Clara sold the property for $30,835, what is her gain or loss on the sale?