Ted and Alice Divorced in 2014

question 21

Multiple Choice

Ted and Alice divorced in 2014.Pursuant to the divorce decree,Ted pays $5,000 alimony and $7,500 child support to Alice every month.Alice is the custodial parent.Which of the following statements is true?

• A)Alice includes the monthly alimony and child support payments in gross income.
• B)Ted is allowed to deduct the monthly alimony and child support payments.
• C)Ted is entitled to the child credits for the couples' two minor children because he is paying child support.
• D)None of the above is true.

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Cash disbursement from a company's income to its shareholders.

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