Questions & AnswersAccounting

Bill and Doris were divorced in 2018. Their only marital property...

Question
Answered step-by-step
Asked by Jessicagrullon2013 on coursehero.com

Bill and Doris were divorced in 2018. Their only marital property...

Bill and Doris were divorced in 2018. Their only marital property was a personal residence with a value of $150,000 and cost of $50,000. Under the terms of the divorce agreement, Doris would receive the house and Doris would pay Bill $17,000 each year for 5 years, or until Bill's death, whichever should occur first. Bill and Doris lived apart when the payments were made to Bill. The divorce agreement did not contain the word "alimony."


a.Bill must recognize a $50,000 [$75,000 - 1/2($50,000)] gain on the sale of his interest in the house.

b.Bill does not recognize any income from the above transactions.

c.Doris is not allowed any alimony deductions.

d.Doris is allowed to deduct $17,000 each year for alimony paid.

Answer & Explanation

Solved by verified expert
Answered by javayoyo on coursehero.com
um dolor sit amet, consectetur adipiscing eli
CliffsNotes Logo

Unlock access to this and over
10,000 step-by-step explanations

Unlock Explanation

Have an account? Log In

Step-by-step explanation

um dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat

Get unstuck with a CliffsNotes subscription

Example CliffsNotes Question and Answer
Unlock every step-by-step explanation, download literature note PDFs, plus more.Get Access