As Part of a Divorce Decree, Janet Must Give Her

question 36

Multiple Choice

As part of a divorce decree, Janet must give her ex-spouse Herman her half-interest in stock with a total value of $120,000 (total basis = $70,000) in exchange for his half-interest in their home with a total value of $150,000 and a basis of $130,000.What are Janet and Herman's realized and recognized gains or losses on this exchange? Janet: Realized Recognized Herman: Realized Recognized

• A)$30,000 $30,000 ($20,000) ($20,000)
• B)$30,000 0 $20,000 0
• C)$40,000 0 ($5,000) 0
• D)$40,000 $10,000 ($5,000) ($5,000)

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Definitions:

Broca's Area

A region in the frontal lobe of the dominant hemisphere (usually the left) of the brain with functions linked to speech production.

Testing Effect

The cognitive phenomenon where taking a test on material leads to better memory retention than if the material was studied without being tested.

Retention of Material

The ability to remember or retain information over time after the initial learning phase.

Retrograde Amnesia

The inability to remember experiences or learned information from before an injury happened or a disease started.