Under a Court-Ordered Decree of Separate Maintenance Executed in 2017,Pillar

question 32

Multiple Choice

Under a court-ordered decree of separate maintenance executed in 2017,Pillar is required to pay her ex-husband,Miguel,$4,750 a month until their youngest son turns age 18.At that time,the required payments are reduced to $2,100 per month.How much of each payment is deductible by Pillar as alimony for 2017?

• A)$6,850.
• B)$4,750.
• C)$2,100.
• D)$0.

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Definitions:

Operating Expenses

Recurring expenses related to the normal operations of a business, such as salaries, rent, utilities, and marketing costs, excluding the cost of goods sold.

Cost of Goods Sold

The expenditures directly related to generating the products a firm sells, which include the costs of materials and labor.

Classified Balance Sheet

A financial statement that groups a company’s assets, liabilities, and equity into categories, making it easier to understand a company’s financial position.

Inventory

A company's merchandise, raw materials, and finished and unfinished products which have not yet been sold.