Ted and Alice were divorced in 2003. Under the terms of the divorce,
Alice received certain stocks that Ted had purchased before their
marriage. His cost of the stock was $10,000 and the fair market value
on the date Alice received the stock was $25,000. Alice also was to
recieve $1,000 each month for 10 years. If Alice died before the end
of the 10 years, the balance of the payments would be made to her
estate. In 2004, Alice sold the stock for $23,000 and collected
$12,000 under the agreement for monthly payments. What is Alice's
gross income from the above for 2004? |