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Taxpayer assets = $7,000 and liabilities = $13,000, a credit card was discharged for $10,000. Is any of it taxable? If so, how much is taxable?

	a.	taxpayer must report the entire $10,000 as income
	b.	amount over insolvency is taxable; $4,000 is taxable
	c.	because taxpayer is insolvent, the entire $10,000 is excluded from income
	d.	taxpayer has taxable income of $7,000

1. Who pays the tax on alimony?

   	a.	Pre-1985, no one gets either a deduction or includes it in income
   	b.	Post-1985, payor doesn't deduct it but payee reports income
   	c.	Post-1985, payor deducts it; payee includes it as income
   	d.	Pre-1985 divorce agreements, payor deducts it; payee includes it as income

2. When does Economic Benefit Doctrine take place?

   	a.	when a taxpayer has physical possession over the income of another
   	b.	compensation for services rendered, no matter what form it is in.
   	c.	when a property owner assigns the income from property owned to another
   	d.	when taxpayer has a conditional right to receive income