Which of the following statements is correct concerning the transfer of the property?
A husband and wife filed for divorce and entered into a written agreement as part of a pending divorce settlement that the husband would transfer to the wife the following property: a house valued at $500,000 and jewelry valued at $10,000. Eighteen months later, the couple obtained a final divorce decree. Which of the following statements is correct concerning the transfer of the property? A. Only personal property transferred as part of a divorce settlement is subject to income tax. B. Both real and personal property transferred as part of the divorce settlement are subject to income tax. C. Only real property transferred as part of a divorce settlement is subject to income tax. D. None of the transferred property is subject to income
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