Bob and Karen were granted a divorce in Year 1. In accordance with the decree, Bob made the following payments to Karen in Year 1: Bob is not required to make cash payments after Karen's death. Bob and Karen were not members of the same household at any time during Year 1. None of the payments were designated as child support. How much should Karen include in her Year 1 taxable income as alimony? A. $64,000 B. $12,000 C. $0 D. $52,000 Nicholas, age 13, earned $700 from lawn mowing during the current year. His parents claim him as a dependent. He also had interest and dividends of $4, 400 during the year. He did not itemize his deductions. What is his unearned income for the current year? A. $3, 700 B. $2, 400 C. $4, 400 D. $5, 100