Casper and Cecile divorced in $2018.$ As part of the divorce settlement, Casper transferred stock to Cecile. Casper purchased the stock for $$152,500,$ and it had a market value of $$244,000$ on the date of the transfer. Cecile sold the stock for $$213,500$ a month after receiving it$.$ In addition Casper is required to pay Cecile $$7,625$ a month in alimony. He made five payments to her during the year.

By how much will each of the above transfers and transactions impact Casper$$s AGI? Cecile$$s AGI?

Casper

required to recognize any gain on the transfer of the stock to Cecile. Further, although he

deduct anything related to the transfer of the stock, he may deduct the $fill in the blank $3$

of alimony payments. Cecile

include the receipt of the stock in her gross income. She must, however, recognize a capital

of $fill in the blank $6$

when the stock is sold and

recognize income from the alimony payments.