Answered: What tax issues should Jennifer…

Business

Accounting

What tax issues should Jennifer consider?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Jennifer recently gave a check for $30,000 and securities with a fair market value of $200,000 to her former husband

pursuant to a divorce. The $30,000 represents alimony and the securities were transferred pursuant to the property

settlement. The property settlement is nontaxable to her former husband. What tax issues should Jennifer consider?

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