In Some States, Child Support Awards Are Based on the Parent's

question 53

Multiple Choice

In some states, child support awards are based on the parent's ________, or the income before federal, state, and local income taxes are deducted.

• A) net income
• B) net adjusted income
• C) gross income
• D) profits

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Definitions:

Pre-Tax Book Income

The income of a company before taxes are applied, calculated according to accounting standards.

Tax Depreciation

A tax deduction that allows a company to recover the cost of property or assets it has purchased by reducing taxable income.

Book Depreciation

Book depreciation is the portion of the cost of a fixed asset that is written off annually on the financial statements of a company over the useful life of that asset, according to accounting standards.

Tax Rate

The percentage at which an individual or corporation is taxed, which can vary based on income levels, activities, or other factors.