Nelda Is Married to Chad,who Abandoned Her in Early June

question 54

Multiple Choice

Nelda is married to Chad,who abandoned her in early June of 2016.She has not seen or communicated with him since then.She maintains a household in which she and her two dependent children live.Which of the following statements about Nelda's filing status in 2016 is correct?

• A)Nelda can use the rates for single taxpayers.
• B)Nelda can file a joint return with Chad.
• C)Nelda can file as a surviving spouse.
• D)Nelda can file as a head of household.
• E)None of these statements is appropriate.

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Definitions:

Completed-Contract Method

An accounting method where revenue and profit are recognized only when a contract is completed, commonly used in long-term project contracts.

Long-Term Contracts

Agreements that specify performance obligations and financial terms for periods typically longer than one year.

Percentage-Of-Completion Method

An accounting method used to recognize revenue and expenses of long-term projects proportionally to the work completed.

Revenue Recognition

The accounting principle that outlines the specific conditions under which revenue is recognized and recorded.