Alimony (LO 2.13) Donald and Michelle are divorced in the current year. As part of the divorce settlement, Michelle transfers a plot of land in Long Island, NY to Donald. Michelle's basis in the property was $20,000 and the market value of the property was $250,000 when transferred. Donald holds the property through the end of the year in hopes of building a residence on it. How much income do Michelle and Donald recognize in the current year? O a. $0 for Michelle and $20,000 for Donald. O b. $230,000 for Michelle and $20,000 for Donald. O c. $0 for Michelle and $250,000 for Donald. O d. $230,000 for Michelle and $0 for Donald. O e. $0 for both Michelle an Donald.

Donaid and Michelle are divorced in the current year. As part of the divorce settlement, Michelle transfers a plot of land in Long Island, NY to Donald. Michelle's basis in the property was $20,000 and the market value of the property was $250,000 when transferred. Donald holds the property through the end of the year in hopes of building a residence on it: How much income do Michelle and Donald recognize in the current year? a. $0 for Michelle and $20,000 for Donald. b. $230,000 for Michelle and $20,000 for Donald. c. $0 for Michelle and $250,000 for Donald. d. $230,000 for Michelle and $0 for Donald. e. $0 for both Michelle and Donald