User Account

All Pages

What are the tax consequences for Casper and Cecile

Assignment Help Accounting Basics
Reference no: EM132737843

Problem - Casper and Cecile divorced in 2018. As part of the divorce settlement, Casper transferred stock to Cecile. Casper purchased the stock for $55,000, and it had a market value of $88,000 on the date of the transfer. Cecile sold the stock for $77,000 a month after receiving it. In addition Casper is required to pay Cecile $2,750 a month in alimony. He made five payments to her during the year.

What are the tax consequences for Casper and Cecile regarding these transactions?

a. How much gain or loss does Casper recognize on the transfer of the stock?

b. Does Casper receive a deduction for the $13,750 alimony paid?

c. How much income does Cecile have from the $13,750 alimony received?

d. When Cecile sells the stock, how much does she report?

Reference no: EM132737843

Questions Cloud

What is the total amount of from agi deductions : What is the total amount of from AGI deductions relating to the condo that Alexa may deduct in the current year? Assume she uses the IRS method
What are the key resources available for a reputable hotel : What are the key resources available for a reputable hotel to effectively and successfully compete within its boundary and attain a competitive advantage?
How much should be reported as cash on December : Cash in Bank A- rank and file payroll account 200,000. How much should be reported as cash on December 31, 2020
What are some ways you give feedback : What are some ways you give feedback now that have worked well for you?
What are the tax consequences for Casper and Cecile : What are the tax consequences for Casper and Cecile regarding these transactions? Does Casper receive a deduction for the $13,750 alimony paid
List three important disclosure items that should be report : Disclose relevant terms, conditions, and restrictions. List three important disclosure items that should be reported in the footnotes in the annual report.
Do still need to send loan confirmation to bank of america : $140 million of loan outstanding from Banc of California. As an auditor, do you still need to send loan confirmation to Bank of America? Why or why not?
What is the core competency of pldt : What is the core competency of PLDT (Philippine Long Distance Telephone Company) at present?
Determine the average number of students waiting : Determine the average number of students waiting to get their forms at the Counter. What is the average length of time each spends at the Registrar

Reviews

Write a Review

Accounting Basics Questions & Answers

  Determine the cash flow from operating activities using

the following information pertains to baxter company for 2013beginning inventory 90units

  What are the tax implications of this arrangement

The corporate income tax rate in LearCo's country is 14%. What are the tax implications (if any) of this arrangement

  What the amount of joint costs allocated to wood bark

Cahill Lumber manufactures mulch and wood bark, What the amount of joint costs allocated to wood bark using the net-realizable-value method would be?

  Compute amount that classified as current liabilities

Glover Corporation's trial balance for December 31, the end of its fiscal year, Compute the amount that should be classified as current liabilities on Glover's

  What are the tax consequences to oriole corporation

What are the tax consequences to Oriole Corporation on the distribution of the land? The land is subject to liability of $300,000

  Prepare entries to record the receivables transactions

Prepare the entries to record the receivables transactions - calculate the net realizable value of accounts receivable at 12/31/10

  Develop budgets to show the costs and expenses for the

the product should be a minimum of 43000 bird houses.1.estimate the impact a new product will have on the current

  What is the annual amortisation expense for the years

Peter has developed new computer software to help analyse more quickly chemical traces found at crime scenes. He is permitted to treat expenditure.

  The cost of general release feature productions is divided

inventories. the costs of feature films and television programs including production advances to independent producers

  Journalize the first interest payment and the amortization

Journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. If an amount box does not require an entry

  What was the allocation of operating costs to this customer

Assume that servicing one of its customers required 230 miles of travel time, 11 copies, and 50 secretarial hours. What was the allocation of operating costs

  Record the entries to assign service salaries

The company applies overhead at a rate of 25% of direct labor. Record the entries to assign service salaries and wages and to apply overhead

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd