Charles and Camilla Are Getting Divorced

Charles and Camilla are getting divorced.Under the terms of the decree Charles will pay Camilla $50,000 in cash in each of the next five years (or until Camilla's death or remarriage) .In addition,Charles will transfer a castle worth $2,000,000 to Camilla and pay $12,000 per year to support their son,Clyde,until he turns 19 years old.What amount (if any) is included in Camilla's gross income this year?

A) $2,062,000
B) $12,000
C) $50,000
D) $2,050,000
E) None of the payments are included in gross income

Correct Answer:

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