8. Cindy finishes school, but has a hard time finding a job. She asks Bob to pay her spousal support in the amount of $500 in addition to the amounts set out in their separation agreement until she finds employment. Which of the following is the tax treatment of the payment? a) Bob can deduct the extra $500 if Cindy agrees. b) Bob must deduct the extra $500. c) Bob cannot deduct the extra $500. d) Bob can deduct the extra $500 if Cindy claims it as income. 9. Which of the following scenarios would NOT threaten Cindy's financial stability? a) Bob declares bankruptcy and gets his spousal support obligation discharged. b) Bob is found to be uninsurable after agreeing to insure his spousal support payments with life insurance. c) Bob becomes disabled and can no longer work. He does not have disability insurance. d) All of the above would threaten Cindy's spousal support 10. Child and spousal support are: a) Not taxable to the recipient b) Both taxable to recipient c) Treated differently: spousal support is taxable to the recipient and child support is not d) Treated differently: child support is taxable to the recipient and spousal support is not 11. What is the equity value of the marital home? a) $220,000 b) $90,000 c) $130,000 d) $60,000 8. Cindy finishes school, but has a hard time finding a job. She asks Bob to pay her spousal support in the amount of $500 in addition to the amounts set out in their separation agreement until she finds employment. Which of the following is the tax treatment of the payment? a) Bob can deduct the extra $500 if Cindy agrees. b) Bob must deduct the extra $500. c) Bob cannot deduct the extra $500. d) Bob can deduct the extra $500 if Cindy claims it as income. 9. Which of the following scenarios would NOT threaten Cindy's financial stability? a) Bob declares bankruptcy and gets his spousal support obligation discharged. b) Bob is found to be uninsurable after agreeing to insure his spousal support payments with life insurance. c) Bob becomes disabled and can no longer work. He does not have disability insurance. d) All of the above would threaten Cindy's spousal support 10. Child and spousal support are: a) Not taxable to the recipient b) Both taxable to recipient c) Treated differently: spousal support is taxable to the recipient and child support is not d) Treated differently: child support is taxable to the recipient and spousal support is not 11. What is the equity value of the marital home? a) $220,000 b) $90,000 c) $130,000 d) $60,000