Rosalind and Carl Were Divorced Under an Agreement Executed July

question 4

Multiple Choice

Rosalind and Carl were divorced under an agreement executed July 1,2011.The terms of the agreement provide that Rosalind will transfer to Carl her interest in a rental house worth $300,000 with a tax basis of $120,000.What is the amount of the gain that must be recognized by Rosalind on the transfer of the property and what is Carl's tax basis in the property after the transfer,respectively.

• A)$180,000 and $300,000
• B)$0 and $300,000
• C)$180,000 and $120,000
• D)$0 and $120,000
• E)None of the above