Arnold And Jane Stevens Were Divorced In December 2016 Specific Requirements Of

Arnold And Jane Stevens were divorced in December, 2016. Specific requirements of teh divorce decree and Mr. Stevens’ performance of those requirements follow:

  • Transfer of title in the personal residence in January, 2017 to Jane as part of a lump sum settlement. One the day of transfer his basis was $24,000, the fair market value was $27,000 and the property was subject to a mortgage of $20,000.
  • Make mortgage payments on the twenty-year mortgage. He paid $5,000 in 2017.
  • Pay Jane $252 per month, of which $300 is specified as child support. He made twelve such payments in 2017. 
  • Repay a $1,500 loan to Jane, which he did on January 1, 2017.

Assuming Jane Stevens has no other income, her 2017 gross income should be:

a. $2,700

b. $8,600

c. $3,600

d. $7,700

e. None of the above  

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