As Part of the Divorce Agreement, Tyler Transfers His Ownership

Multiple Choice

As part of the divorce agreement, Tyler transfers his ownership interest in their personal residence to Lupe. The house had been jointly owned by Tyler and Lupe and the adjusted basis is $520,000. At the time of the transfer to Lupe, the fair market value is $800,000. What is the recognized gain to Tyler, and what is Lupe's basis for the house?

A) $0 and $520,000.
B) $0 and $800,000.
C) $140,000 and $520,000.
D) $280,000 and $800,000.
E) None of the above.