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Marisa and Kurt Divorced in 2012

question 83

Essay

Marisa and Kurt divorced in 2012.Under the terms of the divorce agreement,Marisa was to pay Kurt $110,000 in 2012 and $60,000 each year following until Kurt's death or remarriage.What must Kurt report on his tax return for 2014 regarding these transactions?


Definitions:

Demand Curves

Graphical representations showing the relationship between the price of a good and the quantity demanded by consumers at various price levels.

Supply Curves

Graphical representations showing the relationship between the price of a good and the quantity of the good that producers are willing to supply.

Willingness To Pay

The maximum amount an individual is prepared to spend to obtain a good or service or to avoid something undesirable.

Consumer Surplus

Consumer surplus is the difference between the maximum price consumers are willing to pay for a product or service and the actual price they pay.

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