George and Georgette Divorced Last Year

Multiple Choice

George and Georgette divorced last year.George was ordered to pay (and does pay) Georgette $600 per month alimony and $800 per month child support.In addition,George transferred title to his half of their stock to Georgette last year.The stock had a basis of $120,000 and a fair market value of $260,000 at the date of the transfer.This year Georgette sells the stock for $280,000.What is Georgette's income for this year if she has no other income items?

A) $7,200
B) $19,200
C) $159,200
D) $167,200