Using the following independent situations, answer the following questions:

Situation # 1

Clara received from her Aunt Sona property with an FMV at the date of the gift of $40,000. Aunt Sona purchased the property five years ago for $35,000. Clara sold the property for $43,000.

a. What is the basis to Clara?

b. What is Clara’s gain on the sale?

c. If Clara is in the 37% 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 24% 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 $30,000. Aunt Sona purchased the property five years ago for $35,000. 

a. If Clara sold the property for $43,000, what is her gain or loss on the sale?

b. If Clara sold the property for $33,000, what is her gain or loss on the sale?

c. If Clara sold the property for $28,000, what is her gain or loss on the sale?