FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Jerry and Elizabeth divorced in 2018 and do not live together. Elizabeth has custody of their child, Art, and Jerry pays Elizabeth $22,000 per year. All property was divided equally.
How much should Elizabeth include in income if $12,000 of Jerry’s payments is designated as “nonalimony” in the divorce decree?
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Step 1
Alimony :
Alimony is the payment that is ordered by the court as an award to a spouse (wife) by the former spouse on a divorce agreement. Its main purpose is to provide spousal support so that the spouse can continue the lifestyle to which they are accustomed to after divorce.
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