As a tax preparer, you must exercise due diligence in preparing tax returns. This means:

Select one:

a. You may not rely on the work of others.

b. You must make the client prove the accuracy of the data they provide you.

c. You may ignore any inconsistent information provided by the client if it does not have a material impact on the tax return.

d. You may rely on information provided by the client in good faith without verifying the information.

e. All of these

Pursuant to a divorce decree finalized in March of 2020, Augustina was awarded the family home worth $275,000, alimony of $550 per month ($5,500 during the year), and child support of $650 per month ($6,500 during the year). With regard to her 2020 tax return, which of the following statements is true?

Select one:

a. Augustina must include $287,000 in gross income.

b. Augustina must include $275,000 in gross income.

c. Augustina must include $12,000 in gross income.

d. Augustina must include $5,500 in gross income.

e. None of these awarded amounts is taxable to Augustina