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Exercise 4-23 (Algorithmic) (LO. 4) Casper and Cecile divorced in 2018. As part of the divorce settlement, Casper transferred stock to Cecile. Casper purchased
Exercise 4-23 (Algorithmic) (LO. 4) Casper and Cecile divorced in 2018. As part of the divorce settlement, Casper transferred stock to Cecile. Casper purchased the stock for $127,500, and it had a market value of $204,000 on the date of the transfer. Cecile sold the stock for $178,500 a month after receiving it. In addition Casper is required to pay Cecile $6,375 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 $31,875 alimony paid? c. How much income does Cecile have from the $31,875 alimony received? d. When Cecile sells the stock, how much does she report? Cecile will report a of $
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