As part of the property settlement related to their divorce, Cindy must give Allen the house that they have been living in, while she gets 100 percent of their savings accounts The house was purchased for $90,000 15 years ago in Southern California and is now worth $700,000. If an amount is zero, enter o". How much gain must Cindy recognize on the transfer of the house to Allen? What is Allen's tax basis in the house for calculating tax on any future sale of the house? Sharon transfers to Russ a life insurance policy with a cash surrender value of $48,800 and a face value of $146,400 in exchange for real estate. Russ continues to pay the premiums on the policy until Sharon dies 7 years later. At that time, Russ has paid $21,960 in premiums, and he collects the $146,400 face value. How much of the proceeds, if any, is taxable to Russ? Why? Since the policy was transferred for valuable consideration, the proceeds