Learning Goal: I’m working on a management question and need guidance to help me

Learning Goal: I’m working on a management question and need guidance to help me learn.12. Assume that Clara’s best friend, Marlene, who is 67 and legally blind, is in poor health and has only a meager Social Security income of $3,250 annually. Clara invited her to live with her beginning January 1, 2020 and is providing more than 50% of her total support. Assuming her AGI is the same in 2020 as in 2019, how will this affect Clara’s tax return in 2020?16. Clara is considering selling the vacation home she inherited from her mother. Her mother paid $75,000 for the home 20 years before she died, and Clara inherited it. If Clara sells it today for its full fair market value of $200,000, how much would her taxable gain be on the sale of the house?17. Assume a forest fire destroyed Clara’s mountain vacation retreat in May 2020. Clara’s basis in the property is $125,000. The insurance company paid Clara $226,000 in July 2020 to rebuild. Clara decided not to rebuild in such a remote area and bought a vacation home near a lake in November 2022 for $220,000. How should Clara treat the gain, if any, on this involuntary conversion?
Requirements: 600

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