Stan and Billie have decided to divorce. As part of the divorce settlement, Billie received stock valued at $200,000 that had a basis of $120,000; Stan received their home that had a basis of $240,000 but a fair market value at the time of the divorce of $400,000. Two years after the divorce, Billie sells the stock for $300,000 and a year later Stan sells the home for $600,000 after the twins leave for college.
a. How much is Billie's realized and recognized gain or loss on the sale of the stock?
b. How much is Stan's realized and recognized gain or loss on the sale of the home.

Question

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The Answer of Stan and Billie have decided to divorce. As part of the divorce settlement, Billie received stock valued at $200,000 that had a basis of $120,000; Stan received their home that had a basis of $240,000 but a fair market value at the time of the divorce of $400,000. Two years after the divorce, Billie sells the stock for $300,000 and a year later Stan sells the home for $600,000 after the twins leave for college.
a. How much is Billie's realized and recognized gain or loss on the sale of the stock?
b. How much is Stan's realized and recognized gain or loss on the sale of the home.

Stan and Billie Have Decided to Divorce