[18] Brain invented a new product but did not know who would be willing to market it. Brain asked her friend Rooster for some help. Rooster recommended someone who would be likely to market the product. The product turned out to be a success, and Brain was so happy that she went to Rooster and said, "l want to make you a gift since you were so good to me." Brain gave Rooster $5,000. Which of the following statements is true? A. Rooster must include the $5,000 in gross income B. Rooster may exclude the $5,000 as a gift. C. Rooster may exclude the $5,000 as a prize D. Rooster must pay the gift tax on the $5,000 [19] Which one of the following types of allowable deductions can be claimed as a deduction in arriving at an individual's adjusted gross income if the individual's divorce was executed before 2018 A. Child support payments B. Personal casualty losses C. Charitable contributions D. Alimony payments [20] Mr. and Mrs. Wright were legally divorced in 1984. The court decree of divorce was entered into on April 20, 1984. Mr. Wright is required to pay Mrs. Wright $3,000 a month from May 1, 1984, through May 1, 2019. The payments are not subject to contingencies. Mr. Wright also made a voluntary payment of $1,000 to Mrs. Wright on April 1, 2018. Assuming Mr. Wright made all of the payments required by the divorce decree, what is the amount of alimony deductible on his 2018 return? A. $0 B. $1,000 C. $36,000 D. $37,000 [21] Rick and Stacy were divorced in February of 2018. Requirements of the divorce decree and Stacy's performance follow Transfer title to their residence to Rick. Stacy's basis was $95,000, the fair market value was $105,000, and the residence was subject to a mortgage of $90,000 Make the mortgage payments of $1,000 per month (beginning in March) for the remaining 20 years or until Rick dies, if sooner Pay Rick $500 per month (beginning in March) for 6 years or until Rick dies, if sooner. Of this amount, $200 is designated as child support. Stacy's 2018 alimony deduction is A. $3,000 B. $13,000 C. $15,000 D. $18,000