16. Laura and Leon were granted a divorce in 2020. In accordance with the decree, Leon made the following payments to Laura in 2021: ChildsupportpaymentscontingentontheageofthechildAnnualcashpayments,otherthanchildsupport,specifiedasalimonyinthe$4,000$6,000 Annual cash payments divorce agreement How much sho B) $6 C) $10,000 D) $4,000 E) None of these choices are correct. 17. Mary Lou took an $8,000 distribution from her educational savings account and used $6,000 to pay for qualified higher education expenses. The remaining balance of $2,000 was used to purchase clothes. On the date of the distribution, her educational savings account had a $25,000 balance including the $20,000 she had contributed. How much of the $8,000 distribution is tax-free? A) $6,000 B) $0 C) $7,600 D) $8,000 E) $7,625 18. Jennie receives $12,000 (of which $2,000 is earnings) from a Qualified Tuition Program. She uses the funds to pay for new furniture for her apartment. What amount is taxable to Jennie? A) $12,000 B) $10,000 C) $3,000 D) $2,000 E) $SO 19. For the current year, the maximum percentage of Social Security benefits which might be included in a taxpayer's gross income is? A) 100% B) 65% C) 85% D) 50% E) 0%