As a result of their divorce, Fred agrees to pay alimony to Tammy of $20,000 per year. The payment Fred's or Tammy's death or in the event of Tammy's remarriage. In addition, Tammy is to receive the house that was purchased for $100,000 but is worth $140,000.

A. What is Tammy's basis in the house?
B. How will the $20,000 payments be treated by Fred and Tammy?
Fred will
Tammy will