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Patricia and Cliff Are Married but File Separate Tax Returns

question 90

Essay

Patricia and Cliff are married but file separate tax returns.Patricia received a salary of $42,000 and Cliff received $15,000 of dividends from a stock portfolio that is his own separate property.
a.​If Patricia and Cliff live in a common law state, what income should Patricia show on her separate return?​Salary​​Dividends​​
b.​If they live in California (a community property state), what income should Patricia show on her separate return?​Salary​​Dividends​


Definitions:

Purchased

Purchased refers to items or services that have been bought or acquired by payment in various contexts, including inventory, assets, or services for a business.

Straight-Line Method

An accounting method of depreciation where an equal amount of an asset's cost is allocated as an expense each year over its useful life.

Salvage Value

The estimated value at sale of an asset following its period of utility.

Book Value

The net value of an asset as recorded on the balance sheet, calculated as the original cost minus accumulated depreciation or amortization.

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