Ted and Alice divorced this year.Pursuant to the divorce agreement,Ted pays $5,000 alimony and $7,500 child support to Alice every month.Alice is the custodial parent.Which of the following statements is true?
A) Alice includes the monthly alimony and child support payments in gross income.
B) Ted is allowed to deduct the monthly alimony and child support payments.
C) Ted is entitled to the exemptions for the couples' two minor children because he is paying child support.
D) None of the above is true.
Correct Answer:
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