Thomas and Sally Were Divorced Last Year

Multiple Choice

Thomas and Sally were divorced last year.As a result,Thomas must pay Sally alimony of $100,000 per year starting this year and relinquish the house and car with a combined value of $170,000 and a combined cost basis of $155,000.The house and car are given as a property settlement.As a result of these transactions Thomas has a deduction of

A) $100,000.
B) $155,000.
C) $170,000.
D) $270,000.