Arnold and Barbara Cane were divorced in June 2018. Pursuant to the divorce decree, Arnold is obliged to perform as follows. How does the following transaction in the divorce agreement affect Arnolds and Barbaras taxable income?

Arnold is to make $3,000 per month payments to Barbara. Of this amount one-half is for child support. The divorce decree further states that alimony is to cease upon the death of the wife. In 2021, he made six payments.

Select one:

a.

Barbara has taxable income of $18,000

b.

Barbara has taxable income of $9,000

c.

Barbara has taxable income of $9,000 and the child has taxable of $9,000

d.

Neither Barbara or the child has taxable income