Casper and Cecile divorced in 2018. As part of the divorce settlement, Casper transferred stock to Cecile. Casper purchased the stock for $67,500, and it had a market value of $108,000 on the date of the transfer. Cecile sold the stock for $94,500 a month after receiving it. In addition Casper is required to pay Cecile $3,375 a month in alimony. He made five payments to her during the year.

What are the tax consequences for Casper and Cecile regarding these transactions?

If an amount is zero, enter "$0".

a.How much gain or loss does Casper recognize on the transfer of the stock?

$

b.Does Casper receive a deduction for the $16,875 alimony paid?

yes or no ?

c.How much income does Cecile have from the $16,875 alimony received?

$

d.When Cecile sells the stock, how much does she report?

Cecile will report again or loss? of $

.