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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 the
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 $192,500, and it had a market value of $308,000 on the date of the transfer. Cecile sold the stock for $269,500 a month after receiving it. In addition Casper is required to pay Cecile $9,625 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 $48,125 alimony paid? c. How much income does Cecile have from the $48,125 alimony received? d. When Cecile sells the stock, how much does she report? Cecile will report a of $
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