Charles and Camilla got divorced in 2018. Under the terms of the decree Charles pays Camilla $50,000 in cash in each of the next five years, or until Camilla's death or remarriage. In addition, Charles transferred a castle worth $2,000,000 to Camilla in 2018 and will 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 in 2019?

Charles and Camilla got divorced in 2018. Under the terms of the decree Charles pays Camilla $50,000 in cash in each of the next five years, or until Camilla's death or remarriage. In addition, Charles transferred a castle worth $2,000,000 to Camilla in 2018 and will 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 in 2019?


A. $2,062,000

B. $12,000

C. $50,000

D. $2,050,000

E. None of the payments are included in gross income


Answer: C


Learn More :