As Part of the Divorce Agreement, Tyler Transfers His Ownership

question 4

Multiple Choice

As part of the divorce agreement, Tyler transfers his ownership interest in their personal residence to Lupe. The house had been jointly owned by Tyler and Lupe and the adjusted basis is $520,000. At the time of the transfer to Lupe, the fair market value is $800,000. What is the recognized gain to Tyler, and what is Lupe's basis for the house?

• A)$0 and $520,000.
• B)$0 and $800,000.
• C)$140,000 and $520,000.
• D)$280,000 and $800,000.
• E)None of the above.

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Definitions:

Reinforcer

An element in behaviorist psychology that strengthens a behavior or increases the likelihood of its repetition.

Cognitive Learning

A style of learning that involves understanding, thinking, problem-solving, and remembering, by which knowledge is gained and retained.

Vicarious Learning

Learning that occurs by observing the behaviors of others and the outcomes of those behaviors.

Insects

A vast group of arthropods characterized by a chitinous exoskeleton, a three-part body (head, thorax, abdomen), three pairs of jointed legs, compound eyes, and one pair of antennae.