Question: Consultant negotiates a contract with Client that provides that Client will pay Consultant $ 7 , 0 0 0 per month for services and pay

Consultant negotiates a contract with Client that provides that Client will pay Consultant $7,000 per month for services and pay Consultants childs rent of $3,000 per month directly to the landlord. What are the tax consequences to Consultant and Child?
Group of answer choices
Consultant has gross income of $7,000 per month; Child has no gross income.
Consultant has gross income of $7,000 per month; Child has gross income of $3,000 per month.
Consultant has gross income of $10,000 per month; Child has no gross income.
Consultant has gross income of $10,000 per month; Child has gross income of $3,000 per month.

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