Question: Clementine and Joe started a successful company, Blarg, Inc., shortly after their marriage. They each owned 50% of the Blarg stock with each having a $10,000 basis in their respective blocks of stock. Fifteen years later they divorced. Assuming there are no agreements other than those described, what are the tax consequences to Clementine and Joe of the following transactions? (a) Pursuant to the divorce instrument Clementine sells her Blarg stock back to Blarg for $650,000. Joe had no obligation to buy the stock.