Charles and Camilla Got Divorced in 2018

question 90

Multiple Choice

Charles and Camilla got 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 will transfer a castle worth $2,000,000 to Camilla and 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 this year?

• 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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Definitions:

Critical Path

The longest sequence of activities in a project plan which must be completed on time for the project to complete on due date.

Variance

A statistical measurement that represents the spread between numbers in a data set, indicating how much the numbers differ from the average value.

Variance

A statistical measure that represents the extent to which a set of numbers varies from the average of that set.