Under the Terms of a Divorce Agreement Dated January 1,2014,Edmond

question 94

Essay

Under the terms of a divorce agreement dated January 1,2014,Edmond was to pay his wife Donna $3,000 per month in alimony and $500 per month in child support.Payments began on 1/1/14.In addition,Donna received the family residence with a cost basis of $210,000 and a fair market value of $260,000.
a.What is the amount that Donna must include in income for the twelve-month period ended December 31,2014?
b.What is the basis in the home which Donna received as a result of the divorce?

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