Under the Terms of a Divorce Agreement Entered into in 2018

question 18

Multiple Choice

Under the terms of a divorce agreement entered into in 2018, Kim was to pay her husband Tom $7,000 per month in alimony. Kim's payments will be reduced to $3,000 per month when their 9 year-old son becomes 21. The husband has custody of their son. For a twelve-month period, Kim can deduct from gross income (and Tom must include in gross income) :

• A) $60,000.
• B) $48,000.
• C) $36,000.
• D) $0.
• E) None of these.

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Definitions:

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The quantity of goods or services produced in a given time period by a firm, industry, or country.

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The value of the best alternative forgone when a choice is made between competing options.

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An extra task or plan of action that is undertaken to achieve a specific goal or objective.

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