Charles and Camillagot Divorced in 2018

question 92

Multiple Choice

Charles and Camillagot divorced in 2018. Under the terms of the decree Charles pays Camilla $50,000 in cash in each of the next five years (or until Camilla's death or remarriage) . In addition, Charles transferred a castle worth $2,000,000 to Camillain 2018 and will pay $12,000 per year to support their son, Clyde, until he turns 19 years old. What amount (if any) is included in Camilla's gross income in 2020?

• A)$2,062,000
• B)$12,000
• C)$50,000
• D)$2,050,000
• E)None of the payments are included in gross income.

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Economic Behavior

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