If your answer is zero, enter "0".

a. Under a 2017 divorce agreement, Joan is required to pay her ex-husband, Bill, $4,680 a month until their daughter is 18 years of age. At that time, the required payments are reduced to $3,276 per month.

1. How much of each $4,680 payment may be deducted as alimony by Joan? $

2. How much of each $4,680 payment must be included in Bill's taxable income? $

3. How much would be deductible/included if the divorce agreement were dated 2019? $

b. Under the terms of a property settlement executed during 2019, Jane transferred property worth $816,750 to her ex-husband, Tom. The property has a tax basis to Jane of $653,400.

1. How much taxable gain must be recognized by Jane at the time of the transfer? $

2. What is the amount of Tom's tax basis in the property he received from Jane?