Problem
Grace has provided you, her tax adviser, with the following information:
a) She sold a painting for $10,200. She had purchased the painting more than 10 years ago for only $200, before the artist became very famous and popular.
b) She sold a signed, first edition copy of a book for $7,000. She had purchased the book for $5,000 only 6 months ago.
What is Grace's net capital gain or loss in relation to the above information?