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Please be sure your answers are right, thank you 13. George Grayson owns 100 shares of common stock of Corp. A. Via a nontaxable stock
Please be sure your answers are right, thank you
13. George Grayson owns 100 shares of common stock of Corp. A. Via a nontaxable stock distribution, George receives 20 shares of Corp. A's preferred stock. Assume that Corp. A's common stock has a market value of $20 per share and that the preferred shares received by George have a market value of $30 per share. Assuming that George has a total basis of $1.000 for the 100 shares of Corp. A common stock owned at the time of the distribution, what will be the total basis (not basis per share) of the 20 shares of preferred stock that George receives in the distribution? A $ 600 B 0 770 D 240 E None of the above 14. Anne and Ben Able married in June 23, 2015. Unfortunately, the marriage failed and the parties were legally divorced on January 11, 2020. The divorce decree requires Anne to pay $7,000 per month to Ben -- $4,000 of child support for their two year old daughter, Caroline, and $3,000 for alimony. In addition, the divorce decree requires Anne to pay the $5,000 monthly mortgage payment on the house in which the couple formerly lived until the mortgage loan is paid off. Assume that the house had been owned jointly by Anne and Ben, but that full ownership must be transferred to Ben by the end of 2020. Assume that Anne made twelve $7,000 payments and twelve $5,000 mortgage payments during 2020. Assume finally that the title to the house was transferred to Ben on November 10, 2020 and that the house had a value of $960,000 on the date of transfer. What alimony deduction may Anne claim on her 2020 Form 1040. $144,000 96,000 C 36,000 D 60,000 None of the above B EStep by Step Solution
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