Which of the Following Statements About Divorce Settlements Is True

question 42

Multiple Choice

Which of the following statements about divorce settlements is true?

• A) Property transfers pursuant to divorce have no income tax consequences.
• B) Child support is excluded from the recipient's gross income.
• C) Child support is an above-the-line deduction for the payer.
• D) Statements A. and B. are true.

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Definitions:

Competitive Factors

Elements that determine a company's competitive advantage or disadvantage in the market, such as product quality, price, and customer service.

Market Price

The current price at which an asset or service can be bought or sold in a marketplace, determined by supply and demand dynamics.

Subjective Feel

An individual's personal and emotional response or perception towards something.