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Business, 20.11.2019 21:31 mariaf0203
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 annual payments are to be made to andrea or her estate (if she dies before the end of the eight years), the payments will qualify as alimony. ii. andrea has a taxable gain from an exchange of her one-half interest in the stocks for travis' one-half interest in the house and cash. iii. if travis sells the stocks for $900,000, he must recognize a $400,000 gain. a. only iii is true. b. only i and iii are true. c. only i and ii are true. d. i, ii, and iii are true. e. none of these are true.
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