Under the terms of a divorce agreement, Taylor is to pay his wife Penny $2,000 per month. The payments are to be reduced to $1,600 per month when their 12 year-old child reaches age 18. During the current year, Taylor paid $24,000 under the agreement. Assuming all of the other conditions for alimony are satisfied, Taylor can deduct from gross income (and Penny must include in gross income) as alimony:
a. $24,000.
b. $19,200.
c. $4,800.
d. $0.
e. None of the above.