Problem 4-45 (LO. 4) Nell and Kirby are in the process of negotiating their divorce agreement, to be finalized in 2022. What should be the tax consequences to Nell and Kirby if the following, considered individually, became part of the agreement? a. In consideration for her one-half interest in their personal residence, Kirby will transfer to Nell stock with a value of $200,000 and $50,000 of cash. Kirby's cost of the stock was $150,000, and the value of the personal residence is $500,000. They purchased the residence three years ago for $300,000. The transfer of Nell's basis for the stock is $ Kirby's basis in the house is $ is a nontaxable event. b. Nell will receive $1,000 per month for 120 months. If she dies before receiving all 120 payments, the remaining payments will be made to her estate. payments. the payments are excluded from Nell's gross income since they are received by her, and Kirby may not deduct the c. Nell is to have custody of their 12-year-old son, Bobby. She is to receive $1,200 per month until Bobby (1) dies or (2) attains age 21 (whichever occurs first). After either of these events occurs, Nell will receive only $300 per month for the remainder of her life. The monthly payments are considered as they are received by her, and Kirby may not deduct the payments. the payments are excluded from Nell's gross income a. In conside $50,000 of ca residence thr only the property only the stock The transfer both the stock and property personal residence, Kirby will transfer to Nell stock with a value of $200,000 and ,000, and the value of the personal residence is $500,000. They purchased the is a nontaxable event. b. Nell will receive $1,000 per month for 120 months. If she dies before receiving all 120 payments, the remaining payments will be mad to her estate. since they are received by her, and Kirby may not deduct the Only if the payments are classified as alimony Only if the payments are classified as a property settlement Regardless of the classification as alimony or property settlement $1,200 per month until Bobby (1) dies or (2) attains age 21 c. Nell is to have custody of their 12-year-old son, Bobby. She is to receive $1,200 per month until Bobby (1) dies or (2) attains age 21 (whichever occurs first). After either of these events occurs, Nell will receive only $300 per month for the remainder of her life. The monthly payments are considere as they are received by her, and Kirb the payments are excluded from Nell's gross income child support alimony part child support and part alimony c. Nell is to have custody of their 12-year-old son, Bobby. She is to receive $1,200 per month until Bobby (1) dies or (2) attains age 21 (whichever occurs first). After either of these events occurs, Nell will receive only $300 per month for the remainder of her life. The monthly payments are considered as they are received by her, and Kirby may not deduct the p Only if the payments are classified as alimony Only if the payments are classified child support Regardless of the classification of the payments as child support or alimony