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OtherIncome&Deductions - ASSIGNMENT PROBLEMS OTHER...

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ASSIGNMENT PROBLEMS OTHER PERSONAL INCOMES AND DEDUCTIONS PROBLEM 1 Scott and Diane were divorced on March 1, 20X9. Following the divorce, Scott moved to a small apartment in another part of town. As part of the divorce agreement, Scott agreed to pay Diane a lump sum of $5,000 on April 1, 20X9, alimony of $300/month from March 1, 20X9, and child support for their 2 children (age 3 and 5) of $500 per month from March 1, 20X9. Although not provided for in the agreement, commencing July 1, Scott paid Diane $800 per month to cover the day-care expenses of their 2 children. These were the only day-care expenses Diane incurred in the year. Following a dispute with his employer, for whom he had worked since February 20X1, Scott left his job on May 31. On June 1, Scott moved to a new town 700 km away to start a new job. His eligible moving expenses were $950. He received a $500 moving allowance from his new employer. When he threatened to sue for wrongful dismissal, the former employer made a payment of $20,000 to Scott on June 23, 20X9. He paid $1,200 in January of the following year to a lawyer who represented him in this matter.
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