Stan and Billie Have Decided to Divorce

question 69

Essay

Stan and Billie have decided to divorce. As part of the divorce settlement, Billie received stock valued at $200,000 that had a basis of $120,000; Stan received their home that had a basis of $240,000 but a fair market value at the time of the divorce of $400,000. Two years after the divorce, Billie sells the stock for $300,000 and a year later Stan sells the home for $600,000 after the twins leave for college.
a. How much is Billie's realized and recognized gain or loss on the sale of the stock?
b. How much is Stan's realized and recognized gain or loss on the sale of the home.

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Definitions:

Aloe

A genus of succulent plants, often used in traditional medicine for its soothing, healing properties on skin and wounds.

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Symptoms involving an uneasy stomach and the act of expelling stomach contents through the mouth, often occurring together.

Ginger

A root herb known for its medicinal properties, commonly used to alleviate gastrointestinal distress, reduce nausea, and enhance immune function.

Irritable Bowel Syndrome

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