Yorgi purchases qualified small business stock in Gnu Company, Inc., on September 15, 2008, for $50,000. She sells the shares for $400,000 on December 30, 2020. The stock retains its qualified small business status through the date of the sale.

a. Determine the amount of realized and recognized gain on the sale.

b.  What is Yorgi's effective tax rate on this transaction? (Assume her marginal tax rate is 35%.)

c. Assume that Yorgi has a net capital loss of $80,000 from other capital asset transactions in 2020. What I s the effect of the sale of the stock on Yorgi’s tax liability if her marginal tax rate is 35%.

d. Assume that Yorgi purchased the qualified small business stock in Gnu Company, Inc., on September 15, 2009, and sells the shares for $400,000 on December 30, 2020. Determine the amount of realized and recognized gain on the sale.

e. What is Yorgi's effective tax rate on this transaction? (Assume her marginal tax rate is 35%.)