Bonnie and Howard got divorced in 2018. Under the terms of the decree Bonnie will pay Howard $100,000 in cash in each of the next ten years (or until Howard’s death or remarriage). In addition, Bonnie pays $30,000 per year to support their daughter, Kristina, until she turns 19 years old. What amount (if any) is included in Howard’s gross income this year?

Answer and Explanation:

The amount that is included in Howard's gross income in this year will be $100,000.

It means that the gross amount that is paid by Bonnie to Howard while getting divorced will be added in the income of the Howard as she receives the amount.

Thus, $30000 will not be added.

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