In year 1, Loren and Tim enter into a property settlement agreement under which Tim agrees to
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In year 1, Loren and Tim enter into a property settlement agreement under which Tim agrees to pay $600,000 to Loren in return for the release of her marital rights.
The payment is to be made in three annual installments of $200,000 each. Loren and Tim divorce in year 2, but Tim dies late in the year before the second and third installments can be paid. In year 3,Tim’s executor pays Loren the $400,000 balance due.
AppendixLO1
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Related Book For 
Taxation For Decision Makers 2008
ISBN: 9780324654110
2nd Edition
Authors: Shirley Dennis-Escoffier, Karen A. Fortin
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