As a Result of Their Divorce This Year, Carlos Made

question 70

Multiple Choice

As a result of their divorce this year, Carlos made the following payments to Michelle, his former wife: • He transferred the family car to Michelle. The car cost them $20,000 and was worth $10,000 at the time that he gave it to Michelle. Carlos paid Michelle 12 monthly cash payments of $1,000 each. These payments are to
• continue as long as Michelle lives or until their son is age 19. When their son attains age 19, the payments will be reduced to $600 a month.
• On June 6, Carlos paid Michelle a single cash payment of $70,000 to help her settle in a new home. Carlos kept the family home. How much gross income should Michelle report as a result of the above transfers?

• A) $ 7,200
• B) $12,000
• C) $17,200
• D) $87,200
• E) $92,000

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Definitions:

Wheel Offset

The distance from the hub mounting surface to the centerline of the wheel, affecting how the wheels and tires are positioned in relation to the vehicle's body.

Centerbore

A large hole in the center of a wheel where it mounts to a hub on the vehicle.

Mounting Surface

The area or interface on which a component, device, or mechanism is installed or secured.

Wheel Depth

Measurement of the distance from the outer wheel surface to the mounting plate, important for fitting wheels to a vehicle correctly.