Sonya and Butch Divorce During the Current Year

question 139

Multiple Choice

Sonya and Butch divorce during the current year.Their divorce agreement requires Sonya to pay Butch alimony of $2,500 monthly.When their son,Bubba,attains the earliest of either the age 23 or graduates from college,the payments will cease.
I.Butch must recognize gross income of $2,500 monthly.
II.Sonya may deduct $2,500 monthly from her gross income.
III.Butch will not recognize any gross income due to the payments.
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• A)Only statements I and II are correct.
• B)Only statement I is correct.
• C)Only statement II is correct.
• D)Only statement III is correct.

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Definitions:

Hallucinations

Hallucinations are perceptions in a conscious and awake state in the absence of external stimuli which have qualities of real perception, often sensory in nature.

Feelings of Anxiety

Emotional sensations characterized by nervousness, worry, and apprehension about future events or outcomes.

Posttraumatic Stress Disorder (PTSD)

A mental health condition triggered by experiencing or witnessing a traumatic event, leading to severe anxiety, flashbacks, and other symptoms.

Angry Outburst

A sudden and intense expression of anger, which can be verbal or physical and might be triggered by stress or frustration.