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Under the terms of a divorce agreement entered into on or before 12/31/2018, Lanny was to...

Under the terms of a divorce agreement entered into on or before 12/31/2018, Lanny was to pay his wife Joyce $2,100 per month in alimony and $300 per month in child support. For a twelve-month period, Lanny can deduct from gross income (and Joyce must include in gross income): a. $28,800. b. $3,600. c. $25,200. d. $0. e. None of the above.

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Answer #1

Ans:C.$25,200 is correct answer

As Per Provisions of IRS

Lanny is eligible to deduct the alimony amount paid during the year and is not eligible to deduct child Support expense ,Provided if the agreements is entered on or before 12/31/2018,If it is entered after the date then theses expenses are not eligible to deduction

Hence

Eligible amount=$2100*12=$25,200

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