Ted and Alice divorced in 2014. Pursuant to the divorce decree, Ted pays $5,000 alimony and $7,500 child support to Alice every month. Alice is the custodial parent. Which of the following statements is true?

A. Alice includes the monthly alimony and child support payments in gross income.
B. Ted is entitled to the child credits for the couples' two minor children because he is paying child support.
C. Ted is allowed to deduct the monthly alimony and child support payments.
D. None of the above is true.


Answer: D

Business

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