George and Erin Are Divorced, and George Is Required to Pay

question 114

True/False

George and Erin are divorced, and George is required to pay Erin $20,000 of alimony each year. George earns $75,000 a year. Erin is required to include the alimony payments in gross income although George earned the income.

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Definitions:

Buyers

Individuals or entities that purchase goods or services for personal use or for resale.

Sellers

Individuals or businesses that provide goods or services to consumers in exchange for payment.

Tax

A compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund public expenditures.

Corporations' Profits

The financial earnings that remain for a corporation after all expenses, taxes, and costs have been deducted from total revenue.