Jim and Nora,residents of a Community Property State,were Married in Early

question 100

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 these.

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Definitions:

Property Tax Payable

A liability representing taxes due on the property owned by an individual or company, typically paid annually.

Non-current Liability

Long-term financial obligations listed on a company's balance sheet that are not due within the upcoming twelve months.

Non-current Asset

Assets not expected to be converted into cash, consumed, or utilized within one year of the balance sheet date, including property, plant, and equipment.

IFRS

International Financial Reporting Standards, a set of global accounting standards developed by the International Accounting Standards Board.