Under the terms of a divorce decree executed May 1, 2014, Ahmed transferred a
house worth $650,000 to his ex-wife, Farah, and was to make alimony payments of
$3,000 per month. The property has a tax basis to Ahmed of $300,000.
a. How much of this
must be reported on Farah's tax return?
b. Of that amount, how
much is taxable gain or loss that Farah must recognize related to the transfer
of the house?