Colin and Coleen Divorced in the Current Year

question 14

Essay

Colin and Coleen divorced in the current year.Colin is willing to pay Coleen $20,000 of alimony for five years so that she can return to school and obtain a degree.Coleen has stated that she needs no less than $20,000 after taxes and will not accept Colin's offer of alimony.Coleen is in the 15 percent tax bracket and Colin is in the 33 percent tax bracket.How much alimony must Coleen receive to have $20,000 after taxes? What is Colin's after-tax cost of this alimony payment?

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Definitions:

Micrometer

A precision measuring instrument used to measure very small distances, thicknesses, or diameters with high accuracy.

Rotor Vents

Channels or openings in brake rotors that allow for air circulation to reduce heat buildup during braking.

Lateral Runout

The measure of variation in the rotational path of a wheel, tire, or brake disc around its central axis, which can cause vibrations.

Lack Parallelism

A term possibly relating to the misalignment of vehicle wheels, where two or more wheels are not parallel to each other, affecting the vehicle's handling and tire wear.