Answer the following questions, assuming the divorce agreements were executed after 1984.

1. A husband is required to pay his former wife $12,000 in alimony in the current year. Since he is short of cash, he gives her an automobile worth

$12,000, which she accepts in place of the alimony. How much may the husband deduct as alimony?

2. A husband is required to pay alimony of $2,000 per month to his ex-wife.

However, the alimony is reduced to $1,200 per month when their child, who lives with his mother, becomes 18. How much of the monthly payment is alimony income to the wife?

3. A wife is required to transfer $100,000 worth of property to her ex-husband as a property settlement. The property has a basis to the wife of

$20,000. How much taxable gain must the wife recognize on this transfer?