As Part of a Divorce Decree, Janet Must Give Her

Short Answer

As part of a divorce decree, Janet must give her ex-spouse Herman her half-interest in stock with a total value of $120,000 (total basis = $70,000) in exchange for his half-interest in their home with a total value of $150,000 and a basis of $130,000. What are Janet and Herman's realized and recognized gains or losses on this exchange?
$\begin{array}{rlcl}&\text { Janet: Realized } & \text { Recognized } & \text { Herman: Realized } & \text { Recognized } \\a.&\$ 30,000 & \$ 30,000 & (\$ 20,000) & (\$ 20,000)\\b.&\$ 30,000 & 0 & \$ 20,000 & 0 \\c.&\$ 40,000 & 0 & (\$ 5,000) & 0 \\d.&\$ 40,000 & \$ 10,000 & (\$ 5,000) & (\$ 5,000)\\e.&\text { None of the above }\end{array}$