Exercise 4-23 (Algorithmic) (LO. 4) Casper and Cecile divorced in 2018. As part of the...
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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 $147,500, and it had a market value of $236,000 on the date of the transfer. Cecile sold the stock for $206,500 a month after receiving it. In addition Casper is required to pay Cecile $7,375 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 $36,875 alimony paid? c. How much income does Cecile have from the $36,875 alimony received? d. When Cecile sells the stock, how much does she report? Cecile will report a of $
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