Please answer.it would really help.upvote confirm 47. LO.4 Alicia and Rafel are in the process of negotiating a divorce agreement to befinalized in 2019. They both worked during the marriage and contributed anequal amount to the marital assets. They own a home with a fair market value of$400,000 (cost of $300,000) that is subject to a mortgage of $250,000. They have livedin the home for 12 years. They also have investment assets with a cost of $160,000and a fair market value of $410,000. Thus, the net worth of the couple is $560,000($400,000 – $250,000 + $410,000). The holding period for the investments is longerthan one year. Alicia would like to continue to live in the house. Therefore, shehas proposed that she receive the residence subject to the mortgage, a net value of$150,000. In addition, she would receive $17,600 each year for the next 10 years,which has a present value (at 6% interest) of $130,000. Rafel would receive theinvestment assets. If Rafel accepts this plan, he must sell one-half of the investmentsso that he can purchase a home. Assume that you are counseling Alicia. Explain toAlicia whether the proposed agreement would be "fair" on an after-tax basis.Decisic

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SWFT Comprehensive Volume 2019

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Chapter4: Gross Income: Concepts And Inclusions

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Please answer.it would really help.upvote confirm

47. LO.4 Alicia and Rafel are in the process of negotiating a divorce agreement to be
finalized in 2019. They both worked during the marriage and contributed an
equal amount to the marital assets. They own a home with a fair market value of
$400,000 (cost of $300,000) that is subject to a mortgage of $250,000. They have lived
in the home for 12 years. They also have investment assets with a cost of $160,000
and a fair market value of $410,000. Thus, the net worth of the couple is $560,000
($400,000 – $250,000 + $410,000). The holding period for the investments is longer
than one year. Alicia would like to continue to live in the house. Therefore, she
has proposed that she receive the residence subject to the mortgage, a net value of
$150,000. In addition, she would receive $17,600 each year for the next 10 years,
which has a present value (at 6% interest) of $130,000. Rafel would receive the
investment assets. If Rafel accepts this plan, he must sell one-half of the investments
so that he can purchase a home. Assume that you are counseling Alicia. Explain to
Alicia whether the proposed agreement would be "fair" on an after-tax basis.
Decisic

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Alicia and Rafel are in the process of negotiating a divorce agreement to be finalized in 2019. They both worked during the marriage and contributed an equal amount to the marital assets. They own a home with a fair market value of 400,000 (cost of 300,000) that is subject to a mortgage of 250,000. They have lived in the home for 12 years. They also have investment assets with a cost of 160,000 and a fair market value of 410,000. Thus, the net worth of the couple is 560,000 (400,000 250,000 + 410,000). The holding period for the investments is longer than one year. Alicia would like to continue to live in the house. Therefore, she has proposed that she receive the residence subject to the mortgage, a net value of 150,000. In addition, she would receive 17,600 each year for the next 10 years, which has a present value (at 6% interest) of 130,000. Rafel would receive the investment assets. If Rafel accepts this plan, he must sell one-half of the investments so that he can purchase a home. Assume that you are counseling Alicia. Explain to Alicia whether the proposed agreement would be fair on an after-tax basis.
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