Casper and Cecile divorced in 2018. As part of the divorce settlement, Casper transferred stock to Cecile. Casper purchased the stock for $130,000, and it had a market value of $208,000 on the date of the transfer. Cecile sold the stock for $182,000 a month after receiving it. In addition Casper is required to pay Cecile $6,500 a month in alimony. He made five payments to her during the year. What are the tax consequences for Casper and Cecile regarding these transactions? If an amount is zero, enter "$0". a. How much gain or loss does Casper recognize on the transfer of the stock? b. Does Casper receive a deduction for the $32,500 alimony paid? c. How much income does Cecile have from the $32,500 alimony received? $4 d. When Cecile sells the stock, how much does she report? Cecile will report a of $
Casper and Cecile divorced in 2018. As part of the divorce settlement, Casper transferred stock to Cecile. Casper purchased the stock for $130,000, and it had a market value of $208,000 on the date of the transfer. Cecile sold the stock for $182,000 a month after receiving it. In addition Casper is required to pay Cecile $6,500 a month in alimony. He made five payments to her during the year. What are the tax consequences for Casper and Cecile regarding these transactions? If an amount is zero, enter "$0". a. How much gain or loss does Casper recognize on the transfer of the stock? b. Does Casper receive a deduction for the $32,500 alimony paid? c. How much income does Cecile have from the $32,500 alimony received? $4 d. When Cecile sells the stock, how much does she report? Cecile will report a of $
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter10: Individuals: Income, Deductions, And Credits
Section: Chapter Questions
Problem 1CE
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Question
![Exercise 4-23 (Algorithmic) (LO. 4)
Casper and Cecile divorced in 2018. As part of the divorce settlement, Casper transferred stock to Cecile. Casper purchased the stock for
$130,000, and it had a market value of $208,000 on the date of the transfer. Cecile sold the stock for $182,000 a month after receiving it.
In addition Casper is required to pay Cecile $6,500 a month in alimony. He made five payments to her during the year.
What are the tax consequences for Casper and Cecile regarding these transactions?
If an amount is zero, enter "$0".
a. How much gain or loss does Casper recognize on the transfer of the stock?
b. Does Casper receive a deduction for the $32,500 alimony paid?
c. How much income does Cecile have from the $32,500 alimony received?
$4
d. When Cecile sells the stock, how much does she report?
Cecile will report a
of $](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4b20796c-f8d9-45b4-92bd-57054735dc9f%2Fc4b61d16-0249-4aaa-be57-23217cfcdfa5%2Fms095u_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 4-23 (Algorithmic) (LO. 4)
Casper and Cecile divorced in 2018. As part of the divorce settlement, Casper transferred stock to Cecile. Casper purchased the stock for
$130,000, and it had a market value of $208,000 on the date of the transfer. Cecile sold the stock for $182,000 a month after receiving it.
In addition Casper is required to pay Cecile $6,500 a month in alimony. He made five payments to her during the year.
What are the tax consequences for Casper and Cecile regarding these transactions?
If an amount is zero, enter "$0".
a. How much gain or loss does Casper recognize on the transfer of the stock?
b. Does Casper receive a deduction for the $32,500 alimony paid?
c. How much income does Cecile have from the $32,500 alimony received?
$4
d. When Cecile sells the stock, how much does she report?
Cecile will report a
of $
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