1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Sveta_85 [38]
3 years ago
13

Nell and Kirby are in the process of negotiating their divorce agreement. What should be the tax consequences to Nell and Kirby

if the following, considered individually, became part of the agreement?
a. In consideration for her one-half interest in their personal residence, Kirby will transfer to Nell stock with a value of $200,000 and $50,000 of cash. Kirby's cost of the stock was $150,000, and the value of the personal residence is $500,000. They purchased the residence three years ago for $300,000.
Nell's basis for the stock is _______$ X
Kirby's basis in the house is ______$ X
b. Nell will receive $1,000 per month for 120 months. If she dies before receiving all 120 payments, the remaining payments will be made to her estate.
The payments (qualify, do not qualify) as alimony and are (included in, excluded from) Nell's gross income as they are received.
c. Nell is to have custody of their 12-year-old son, Bobby. She is to receive $1,200 per month until Bobby (1) dies or (2) attains age 21 (whichever occurs first). After either of these events occurs, Nell will receive only $300 per month for the remainder of her life.
$ X per month is alimony that is (included in, excluded from) Nell's gross income, and the remaining $ X per month is considered​(child support, property settlement) and is (nontaxable, taxable) to Nell.
Business
1 answer:
Dafna1 [17]3 years ago
4 0

Answer:

Explanation:

CHECK THE COMPLETE QUESTION BELOW;

The transfers of the stock and residence pursuant to the divorce are nontaxable to Nell

and Kirby. Nell assumes Kirby's basis in the stock of $150,000, and Kirby's basis in the house is $300,000. However, the $50,000 cash paid by Kirby will be alimony

unless the agreement specifies that the payment is "not alimony."

Nell and Kirby are in the process of negotiating their divorce agreement. What should be the tax consequences to Nell and Kirby if the following, considered individually, became part of the agreement?

A) In consideration for her one-half interest in their personal residence, Kirby will transfer to Nell stock with a value of $200,000 and $50,000 of cash. Kirby's cost of the stock was $150,000, and the value of the personal residence is $500,000. They purchased the residence three years ago for $300,000.

a) The transfer of the property is a _____event.

b) Nell's basis for the stock is $

c) Kirby's basis in the house is $

B). Nell will receive $1,000 per month for 120 months. If she dies before receiving all 120 payments, the remaining payments will be made to her estate.

The payments (qualify, do not qualify) as alimony and are (included in, excluded from) Nell's gross income as they are received.

C) Nell is to have custody of their 12-year-old son, Bobby. She is to receive $1,200 per month until Bobby (1) dies or (2) attains age 21 (whichever occurs first). After either of these events occurs, Nell will receive only $300 per month for the remainder of her life.

$ X per month is alimony that is (included in, excluded from) Nell's gross income, and the remaining $ X per month is considered​(child support, property settlement) and is (nontaxable, taxable) to Nell.

ANSWER AND EXPLANATION:

A). In consideration for her one-half interest in their personal residence, Kirby will transfer to Nell stock with a value of $200,000 and $50,000 of cash. Kirby's cost of the stock was $150,000, and the value of the personal residence is $500,000. They purchased the residence three years ago for $300,000.

ANSWER:

a) The transfer of the property is a __non negotiatiable___event.

b) Nell's basis for the stock is $150,000

c) Kirby's basis in the house is $300,000

Hints;

✓ From the question, it was stated at the onset of their agreement that ""Nell and Kirby are in the process of negotiating their divorce agreement". Hence it is a non negotiatiable event.

✓ from the question as well, Nell assumes ""Kirby's basis in the stock of $150,000, and Kirby's basis in

the house is $300,000." Hence, the basis for Nell and Kirby are $150,000 and $300,000 respectively.

B). Nell will receive $1,000 per month for 120 months. If she dies before receiving all 120 payments, the remaining payments will be made to her estate.

The payments (qualify, do not qualify) as alimony and are (included in, excluded from) Nell's gross income as they are received.

ANSWER: The payments "Do NOT QUALIFY""as alimony and are "EXCLUDED FROM""Nell's gross income as they are received.

HINTS: As the payment is been received, it cannot be recorded as the Nell's gross profit ,and cannot be counted as alimony, reason behind this is that even if Nell should die,the payment continues.

Note that, alimony can be regarded as the payment that are to be paid from one of the couple to the other after divorce as part of finance support, usually ordered by court of law.

C). Nell is to have custody of their 12-year-old son, Bobby. She is to receive $1,200 per month until Bobby (1) dies or (2) attains age 21 (whichever occurs first). After either of these events occurs, Nell will receive only $300 per month for the remainder of her life.

$ X per month is alimony that is (included in, excluded from) Nell's gross income, and the remaining $ X per month is considered​(child support, property settlement) and is (nontaxable, taxable) to Nell.

ANSWER: "$300 per month" is alimony that is" INCLUDED IN"" Nell's gross income, and the remaining $900 per month is considered "CHILD SUPPORT"child and is "NON TAXABLE to Nell.

HINTS:it was stated that Nell should receive $1200 monthly for Bobby's child support as well as alimony, out of this $900 goes for child support and $300 for alimony, provided that all the stated Condition stated in the question is followed duely.

You might be interested in
ALBERTO: Tami, I’ve got a problem. Can we talk for a minute?
aksik [14]

The component of reflective listening that is missing from this conversation is Paraphrasing the expressed.

<h3>Reflective listening Components</h3>
  • Statements like "I see," and  "Okay," are crucial at the beginning of a conversation and in circumstances when there may be worry or discomfort in an Affirming Contact.
  • Clarify any implicit portions of the message, which include ideas and sentiments that are not fully or clearly articulated together with their openly declared message.
  • Paraphrasing the expressed explains to the speaker what was heard, as well as what the listener's feelings and ideas were. utilize a follow-up query occasionally.

Hence, Paraphrasing the expressed is the aspect of reflective listening that is absent from this dialogue.

To learn more about reflective listening refer to:

brainly.com/question/8955472

#SPJ10

8 0
2 years ago
Roberta is a customer service representative at a car rental company. Read the passage. Which actions might lead to increased cu
pochemuha

Answer:

Training

Explanation:

Learning within a workgroup is the only way to improve performance. An outstanding representative as Roberta needs to transfer her skills to the rest of the team. One strategy to accomplish that is naming her as responsible for on-board training for the new teamates.

Another strategy is to use surveys after the calls to know what are the opinions of clients regarding services. It allows to identify improvement opportunities.

3 0
3 years ago
An electronic ________ is essentially a collection of personal computers networked together with sophisticated software tools to
Lorico [155]

Answer:

The correct answer is letter "E": meeting system.

Explanation:

An Electronic Meeting System (EMS) is a form of a networking-based group in which its members are connected through computers so they collectively can take decisions, solve problems, discuss over certain topics, and provide anonymous valuable feedback. EMS is used as a meeting platform for large entities with centralized decision-making but a presence in different regions around the world.

<em>EMS disadvantage is relying on different internet connections for the meeting. If one of them is not stable the meeting is likely to be interrupted frequently.</em>

3 0
3 years ago
Assume the initial present value of the payments on a lease are equal to the cost of the leased asset. This capital lease is rec
Whitepunk [10]

Answer: D) present value of the remaining lease payments.

Explanation:

When recording a capital lease in the balance sheet of the lessee, the amount recorded is the<em> lower amount </em>between the present value of the remaining lease payments or the cost of the leased asset.

As the <em>cost</em> of the leased asset is <em>equal</em> to the <em>initial</em> present value of the payments, the cost will therefore be higher than the current present value of the remaining payments so the appropriate amount to put in the balance sheet will be the current present value of the remaining lease payments.

4 0
3 years ago
The exact meaning of the signals exchanged between a sender and a receiver is called a:_________
Nastasia [14]

The exact meaning of the signals exchanged between a sender and a receiver is called as a Network protocol.

<h3>What Is a Network Protocol?</h3>

A network protocol is a set of rules that determine how data is transmitted between different devices in the same network.

Because of the Network protocols we can easily communicate with people all over the world, and thus play a critical role in modern digital communications.

Similar to the way that speaking the same language simplifies communication between two people, network protocols make it possible for devices to interact with one another because of predetermined rules built into devices’ software and hardware.

Neither local area networks (LAN) nor wide area networks (WAN) could function the way they are doing today without the use of network protocols.

To learn more about network protocol: brainly.com/question/13327017

#SPJ4

4 0
2 years ago
Other questions:
  • Prepare adjusting journal entries, as needed, for the following items.
    5·1 answer
  • The Treasury bill rate is 4% and the market risk premium is 7%. Project Beta Internal Rate of Return, % P 0.85 18 Q 0.00 14 R 2.
    6·1 answer
  • The trend line estimates that the price was $432 in November 2007 and $80 in September 2011. (That is an interval of 46 months.)
    10·1 answer
  • During March 2020, Garner Tool &amp; Die Company worked on four jobs. A review of the direct labour costs reveals the following
    6·1 answer
  • Wilder, Inc. applies overhead to production at a predetermined rate of 90% based on direct labor cost. Job No. 305, the only job
    5·1 answer
  • The manager of a firm believes that she would lose sales if she raised her prices by $2.00, but the revenue lost would be more t
    7·1 answer
  • Compare and Contrast the four current perspectives of organizational effectiveness.
    8·1 answer
  • People are living paycheck to paycheck why is that a problem
    12·1 answer
  • You have just been hired as the accountant for Fan-Tastic Sports Gear Inc., a wholesaler of sporting goods and apparel. The prev
    7·1 answer
  • A hospital arranges with a third-party payer to charge the third party 85 percent of its established billing rates. During Janua
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!