John and mary were divorced in 2016. the divorce decree provides that john pay alimony of $10,000 per year, to be reduced by 20% on their child’s 18th birthday. during the year, john paid $7,000 directly to mary and $3,000 to spring college for mary’s tuition. what amount of these payments should be reported as income in mary’s 2019 income tax return?

Sailcloth & more currently produces boat sails and is considering expanding its operations to include awnings for homes and travel trailers. the company owns land beside its current manufacturing facility that could be used for the expansion. the company bought this land 5 years ago at a cost of $319,000. at the time of purchase, the company paid $24,000 to level out the land so it would be suitable for future use. today, the land is valued at $295,000. the company has some unused equipment that it currently owns valued at $38,000. this equipment could be used for producing awnings if $12,000 is spent for equipment modifications. other equipment costing $490,000 will also be required. what is the amount of the initial cash flow for this expansion project?