Which of the following statements is/are correct?
I.Terry's divorce decree provides that his ex-wife is to pay him alimony of $500 per month until their son reaches age 18 or dies, at which time the payment will be reduced to $300. Terry recognizes $300 of alimony income each month.
II.Jerry is the manager of Northgate apartments. He is required to live in an apartment in the complex that normally rents for $600 per month. Jerry must recognize $600 per month as income from his management job.
III.Lorraine's aunt dies during the current year. The aunt's $20,000 life insurance policy names Lorraine as the beneficiary. Lorraine receives $20,000 from the policy in December. Lorraine must include the $20,000 in her gross income.
IV.Helen receives a teaching assistantship from the music department that pays her $300 per month. Helen must work as a lab assistant 15 hours per week. Helen's total direct education costs are $9,000. Helen includes the $300 per month in her income.

Question

Which of the following statements is/are correct?
I.Terry's divorce decree provides that his ex-wife is to pay him alimony of $500 per month until their son reaches age 18 or dies, at which time the payment will be reduced to $300. Terry recognizes $300 of alimony income each month.
II.Jerry is the manager of Northgate apartments. He is required to live in an apartment in the complex that normally rents for $600 per month. Jerry must recognize $600 per month as income from his management job.
III.Lorraine's aunt dies during the current year. The aunt's $20,000 life insurance policy names Lorraine as the beneficiary. Lorraine receives $20,000 from the policy in December. Lorraine must include the $20,000 in her gross income.
IV.Helen receives a teaching assistantship from the music department that pays her $300 per month. Helen must work as a lab assistant 15 hours per week. Helen's total direct education costs are $9,000. Helen includes the $300 per month in her income.
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Quizplus · Accepted Answer

- Statement I is correct because Terry must recognize the full amount of alimony he receives each month, even though the amount will be reduced in the future.- Statement IV is correct because Helen must include the $300 per month she receives from her teaching assistantship in her income, even though she must work as a lab assistant in exchange for the payment.

Which of the Following Statements Is/are Correct