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As a result of their divorce, Bill agreed to pay alimony to Jenny of $18,000...

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Accounting

As a result of their divorce, Bill agreed to pay alimony to Jenny of $18,000 per year. The payments are to cease in the event of Bill's or Jenny's death or in the event of Jenny's
remarriage. In addition, Jenny is to receive their residence, which cost them $98,000 but is worth $135,000.(Assume the change in tax law as of December 31,2018.)
Read the requirements.
Requirement a. How will the $18,000 payments be treated by Bill and Jenny if covered by prior law?
If the divorce was complete prior to December 31,2018, Bill
If the divorce was complete prior to December 31,2018, Jenny
can deduct the $18,000 payments as alimony.
must not include the $18,000 payments in gross
income.
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