Fundamentals of Taxation 2011 4th Edition by Ana Cruz, Debra Prendergast, Dan Schisler, Michael Deschamps

Exercise 19

The Hamiltons were granted a decree of divorce in 2009. In accordance with the decree, Rick Hamilton is to pay his ex-wife $24,000 a year until their only child, Evelyn now 10, turns 18, and then the payments will decrease to $14,000 per year. For 2010, how much can Rick deduct as alimony for the year? a. $10,000.
B) $14,000.
C) $24,000.
D) None of the above.