Exit CPA-REGULATION CPA Regulation
Question 5 of 5
0% complete
Q5 Single choice

John and Mary were divorced in 1991. The divorce decree provides that John pay alimony of $10,000 per year, to be reduced by 20% on their child's 18th birthday. During 1992, John paid $7,000 directly to Mary and $3,000 to Spring College for Mary's tuition.

What amount of these payments should be reported as income in Mary's 1992 income tax return?

  • A

    $5,600

  • B

    $8,000

  • C

    $8,600

  • D

    $10,000