FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Self-Study Problem 2.13
A taxpayer (payor ex-spouse) is required to pay an ex-spouse (recipient ex-spouse) alimony of $12,000 per year. Determine how much
alimony is deductible by the payor ex-spouse and how much alimony is recognized as income by the recipient ex-spouse based on the
following information:
If an answer is zero, enter "0".
Details
a. The payments are made in 2021 as part of a divorce decree
executed in 2018. The divorce decree is modified in 2021 to
explicitly apply the provisions of the TCJA.
b. The payments are made in 2021 as part of a divorce decree
executed in 2016.
c. The payments are made in 2021 as part of a divorce decree
executed in 2021.
Deductible by
payor
Includable by
recipient
00
00
Expert Solution
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Step 1
| Serial no. | Deductible by payer | Includable by recipient |
| a | $0 | $0 |
| b | $12,000 | $12,000 |
| c | $0 | $0 |
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