As a result of their divorce, Fred agrees to pay alimony to Tammy of $20,000 per year. The payments are to cease in the event of Fred’s or Tammy’s death or in the event of Tammy’s remarriage. In addition, Tammy is to receive their residence, which cost them $100,000 but is worth $140,000. 
a. Does the fact that Tammy receives the residence at the time of the divorce mean that there is a reduction in alimony, which will lead to Fred having to recapture an amount in the subsequent year?
b. How will the $20,000 payments be treated by Fred and Tammy?
c. Would recapture of the payments be necessary if payment ceased because of Tammy’s remarriage?
d. What is Tammy’s basis in the residence?