Questions 7. When Barry and Joanne had their two children, they agreed that Barry would stay home with the children for a few years. When the youngest was six, Barry and Joanne divorced. and agreed that Barry would have custody of the children, as Joanne's job required her to travel a great deal. Joanne makes $120,000 a year, while Barry makes $23,000 teaching part- time. Joanne agreed to pay Barry $1,800 a month in spousal support, and $1,500 a month in child support. Assuming they have no other tax deductions, what is their taxable income in each of the following circumstances? (a) They write their own agreement and state only that Joanne will pay $3,300 a month. (b) The courts award Barry $1,800 a month in spousal support and $1,500 in child support. (d) They write their own agreement that Joanne will pay Barry $1,800 a month in spousal support and $1,500 in child support. (e) Joanne is paying $1,800 a month in spousal support and $1,500 in child support as per their written agreement in part c. Barry runs into financial difficulties, ancd him an extra $5,000. (e) The court order states that Joanne pays $1,800 a month in spousal support an in child support. month For the last six months of the current year, she paid a total of $2,800 a is paying $1,800 a month in spousal support and $1,500 in child support However, she got behind on several months payments, and Barry had to go to court to get her to pay. Joanne paid all that was due, but Barry incurred legal expenses ot $3,500 (g) Joanne pays $1,500 in child support, but paid Barry a $200,000 lump-sum instead of paying monthly support payments. Answer: Barry Joanne 23,000 44,600 44,600 44,600 33,800 41,100 23,000 120,000 98,400 98,400 98,400 109,200 98,400 120,000