Jon and Melissa were divorced in December 2018. Under the divorce agreement, Melissa was granted custody of Belle, their 7-year-old daughter. Jon is required to pay Melissa $4,500 per month until Belle turns 18, at which point the monthly payments are reduced to $2,000 per month for the remainder of Melissa's life or until she remarries. For 2023, assuming Jon makes all required payments under the divorce agreement, how much of it, if any, can he deduct for tax purposes? a. $0 b. $24,000 C. $30,000 d. $54,000 e. $78,000
Jon and Melissa were divorced in December 2018. Under the divorce agreement, Melissa was granted custody of Belle, their 7-year-old daughter. Jon is required to pay Melissa $4,500 per month until Belle turns 18, at which point the monthly payments are reduced to $2,000 per month for the remainder of Melissa's life or until she remarries. For 2023, assuming Jon makes all required payments under the divorce agreement, how much of it, if any, can he deduct for tax purposes? a. $0 b. $24,000 C. $30,000 d. $54,000 e. $78,000
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:5. Jon and Melissa were divorced in December 2018. Under the divorce agreement, Melissa was granted
custody of Belle, their 7-year-old daughter. Jon is required to pay Melissa $4,500 per month until Belle
turns 18, at which point the monthly payments are reduced to $2,000 per month for the remainder of
Melissa's life or until she remarries. For 2023, assuming Jon makes all required payments under the
divorce agreement, how much of it, if any, can he deduct for tax purposes?
a. $0
b. $24,000
C. $30,000
d. $54,000
e. $78,000
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