Jim and Nora, Residents of a Community Property State, Were

question 23

Multiple Choice

Jim and Nora, residents of a community property state, were married in early 2013. Late in 2013 they separated, and in 2014 they were divorced. Each earned a salary, and they received income from community owned investments in all relevant years. They filed separate returns in 2013 and 2014.

• A) In 2014, Nora must report only her salary and one-half of the income from community property on her separate return.
• B) In 2014, Nora must report on her separate return one-half of the Jim and Nora salary and one-half of the community property income.
• C) In 2014 Nora must report on her separate return one-half of the Jim and Nora salary for the period they were married as well as one-half of the community property income and her income earned after the divorce.
• D) In 2014, Nora must report only her salary on her separate return.
• E) None of the above.

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Territory Management

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Sales Profits

The financial gain realized when the revenue from selling goods or services exceeds the cost associated with providing them.

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Operating refers to the day-to-day activities and processes undertaken by an organization or system to conduct its business and achieve its objectives.

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A professional responsible for managing and selling products or services to customers within a specific geographical area.