Bob and Alice Marshall were divorced on March 1, 2015. The following transactions are the terms of the decree: (a.) Alice will transfer title of the family home to Bob. The house has a fair market value of $80,000. (b.) Both children will live with Alice. (c.) Bob will give Alice $2,000 per month for alimony. Also, he is to give Alice $600 per month for child support.

Determine how the above transactions affect Bob and Alices tax liabilities. Explain your answers.