Which of the Following Sources of Income Associated with Divorce

question 37

Multiple Choice

Which of the following sources of income associated with divorce is (are) reported as part of gross taxable income?

• A)Property settlement
• B)Child support payments received
• C)Alimony
• D)All of these

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Definitions:

Salvage Value

The anticipated amount an asset is expected to sell for once it reaches the end of its life span.

Pretax Return

The income or profit earned by a business before the deduction of tax.

Net Present Value

A financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time, used to assess the profitability of an investment.

Annual Cash Savings

The amount of money saved over the course of a year as a result of cost-cutting measures, efficiency improvements, or other savings opportunities.