Travis and andrea were divorced their only marital

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Microeconomics
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Chapter 20 / Exercise 9
Microeconomics
Arnold
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81. Travis and Andrea were divorced. Their only marital property consisted of a personal residence (fair market value of $400,000, cost of $200,000), and publicly-traded stocks (fair market value of $800,000, cost basis of $500,000). Under the terms of the divorce agreement, Andrea received the personal residence and Travis received the stocks. In addition, Andrea was to receive $50,000 for eight years. I. If the $50,000 a her estate (if sh
We have textbook solutions for you!
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Microeconomics
The document you are viewing contains questions related to this textbook.
Chapter 20 / Exercise 9
Microeconomics
Arnold
Expert Verified
payments will q II. Andrea has a taxable gain from an exchange of her one-half inter in the house and cash. III. If Travis sells the stocks for $900,000, he must recognize a $400
82. Which of the following is not a requirement for an alimony deduction?
83. Tim and Janet were divorced. Their only marital property was a personal residence with a value of $120,000 and cost of $50,000. Under the terms of the divorce agreement, Janet would receive the house and Janet would pay Tim $15,000 each year for 5 years, or until Tim’s death, whichever should occur first. Tim and Janet lived apart when the payments were made to Tim. The divorce agreement did not contain the word “alimony.”
84. Thelma and Mitch were divorced. The couple had a joint brokerage account that included stocks with a basis of $600,000 and a fair market value of $1,000,000. Under the terms of the divorce agreement, Mitch would receive the stocks and Mitch would pay Thelma $100,000 each year for 6 years, or until Thelma’s death, whichever should occur first. Thelma and Mitch lived apart when the payments were made by Mitch. Mitch paid the $600,000 to Thelma over the six-year period. The divorce agreement did not contain the word “alimony.” Then, Mitch sold the stocks for $1,300,000. Mitch’s recognized gain from the sale is: A. $0.
B. $1,000,000 ($1,300,000 – $300,000). C. $700,000 ($1,300,000 – $600,000). D. $300,000 ($1,300,000 – $1,000,000). E. None of the above.

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