As a result of a divorce agreement executed in 2018, Michael pays Judy $75,000 in year one and $25,000 per year in subsequent years. How much of the $75,000 in year one is properly characterized as alimony and will not be recaptured later?
A) $35,000
B) $40,000
C) $75,000
D) $25,000
Correct Answer:
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