In 2018, Cathy Cummings, single, 66 years of age, and legally blind, had wages and net rental income (after depreciation) of \(\$ 30,000\) and received \(\$ 500\) in interest income. She had \(\$ 17,000\) of allowable itemized deductions. In addition, she had the following transactions during 2018:

a. She sold stock for \(\$ 2,800\). She had inherited the stock from her father, who had an adjusted basis in the stock of \(\$ 1,200\). The fair market value at the date of his death was \(\$ 1,800\).

b. During 2017, Cathy had purchased some Almond Corp. stock. On January 22,2017 , she paid \(\$ 5\) a share for 20 shares, and on May 13, 2017, she paid \(\$ 8\) a share for 10 shares. She sold 15 shares during 2018 for \(\$ 10\) a share. Those shares most recently purchased were identified as being sold.

c. Cathy sold to her sister Janice stock in Bass Corp. for \(\$ 800\). She had an adjusted basis of \(\$ 950\) in this stock.

d. Cathy built a new house in 2018 and converted her former residence into rental property. At the time of the conversion, the adjusted basis of the old house was \(\$ 144,000\) with a fair market value of \(\$ 140,000\). She sold the rental house for \(\$ 141,000\) in October 2018, four months after its conversion to rental property, and took depreciation of \(\$ 1,000\) for the four months.

. Compute Cathy's taxable income for 2018. Treat all income as ordinary income.