Marisa and Kurt Divorced in 2015

question 83

Essay

Marisa and Kurt divorced in 2015.Under the terms of the divorce agreement,Marisa was to pay Kurt $110,000 in 2015 and $60,000 each year following until Kurt's death or remarriage.What must Kurt report on his tax return for 2017 regarding these transactions?

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Definitions:

Return on Assets

is a financial ratio that measures how profitably a company can utilize its assets to generate earnings.

EBIT

Earnings Before Interest and Taxes; a measure of a firm's profitability that excludes interest and income tax expenses.

Net Income

The total earnings of a company after deducting all expenses from its total revenue, often referred to as the bottom line.

Earnings Per Share

Earnings Per Share (EPS) is a financial ratio that indicates the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of the company's profitability.