John and Mary were divorced in 2015. The divorce decree provides that John pay alimony of $10,000 per year, to be reduced by 20% in 5 years on their child's 18th birthday. During 2016, John paid $7,000 directly to Mary and $3,000 to Spring College for Mary's tuition. What amount of these payments should be reported as income in Mary's 2016 income tax return?
a. $8,600
b. $8,000
c. $5,600
d. $10,000
Ans: b. $8,000
Business
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