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Gabby Is Planning a Divorce,the Terms of Which Will Be

Question 122

Multiple Choice

Gabby is planning a divorce,the terms of which will be settled in 2019.Under the expected terms of the divorce decree,she will pay alimony of $24,000 per year.Gabby's expected marginal tax bracket for 2019 is 24%.Gabby will have an after tax cost for the $24,000 payment of


A) $0.
B) $5,760.
C) $18,240.
D) $24,000.

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