Under the Alimony Rules

question 64

Multiple Choice

Under the alimony rules:

• A)The income is included in the gross income of the recipient of the payments.
• B)A person who receives a property division has experienced an increase in wealth and thus should be subject to tax.
• C)State law determine what is alimony for Federal income tax purposes.
• D)Payments for child care are included in the child's gross income.
• E)None of the above.

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Definitions:

Machine-Hours

A measure of the amount of time machines are run, often used as a base for allocating factory overhead.

Total Job Cost

The cumulative cost of materials, labor, and overhead for a specific job or project.

Job-Order Costing

A cost accounting system that assigns manufacturing costs to an individual product or batch of products, making it possible to track the cost of specific jobs.

Machine-Hours

A measure of production time, used as a basis for allocating manufacturing overhead costs based on the number of hours machines are operated.