Fred is required to pay Wilma $12,000 of alimony each year until their child turns 18. At that time, the payment will be reduced to $10,000 per year. In year 3, in accordance with the divorce agreement, Fred paid $6,000 directiy to Wilma and $6,000 directiy to the iaw schooi Wilma is attending. What amount of the payments received in year 3 is income to Wilma? a. $6,000 b. $10,000 c. $12,000 d. $0 23

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Business

Deja Bridges

13 March, 11:10

Fred is required to pay Wilma $12,000 of alimony each year until their child turns 18. At that time, the payment will be reduced to $10,000 per year. In year 3, in accordance with the divorce agreement, Fred paid $6,000 directiy to Wilma and $6,000 directiy to the iaw schooi Wilma is attending. What amount of the payments received in year 3 is income to Wilma? a. $6,000 b. $10,000 c. $12,000 d. $0 23

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Brooklynn Blevins · Answer 1

c. $12,000

Explanation:

In this question, we assume the Fred and Wilma divorced in year i. e before 2019. Since in the question, it is given that the Fred paid $6,000 Wilma and $6,000 directly to the Law school Wilma is attending i. e not related to the child

Both payments are related to Wilma so we consider these payments and reflects the received payment which equals to

= $6,000 + $6,000

= $12,000

All other information which is given is not relevant. Hence, ignored it