Sarah and Jason Are Married and Live in a Community

question 79

Multiple Choice

Sarah and Jason are married and live in a community property state.Sarah is a nurse and earns $40,000 per year; Jason is an engineer and earns $75,000 per year.They have a joint bank account that earned $500 in interest and Jason recently invested in some stocks that paid a $2,000 dividend.If Sarah and Jason file separate returns, how much income would Sarah report?

• A)$40,000
• B)$41,000
• C)$57,750
• D)$58,750

---

Definitions:

Statement Of Financial Position

A financial document detailing an entity's assets, liabilities, and equity at a specific point in time, providing a snapshot of its financial condition.

Public Support Contribution Revenue

Income received by non-profit organizations from the public, which can include donations, grants, and other forms of financial support.

Not-for-Profit Entity

An organization that operates for purposes other than generating profit, often focused on social, educational, or humanitarian objectives.

Form 990

A tax form filed by nonprofit organizations to provide the IRS with annual financial information, including revenue, expenses, and compensation of officers.