Under the terms of a divorce decree executed May 1, 2018, and which has not been amended since, Ahmed transferred a house worth $550,000 to his ex-wife, Farah, and was to make alimony payments of $3,050 per month. The property has a tax basis to Ahmed of $250,000.

Required:

1. How much of this must be reported on Farahs 2021 tax return?
2. Of that amount, how much is taxable gain or loss that Farah must recognize related to the transfer of the house?