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

question 48

Multiple Choice

Jim and Nora, residents of a community property state, were married in early 2017. Late in 2017 they separated, and in 2018 they were divorced. Each earned a salary, and they received income from community owned investments in all relevant years. They filed separate returns in 2017 and 2018.

• A) In 2018, Nora must report only her salary and one-half of the income from community property on her separate return.
• B) In 2018, 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 2018 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 2018, Nora must report only her salary on her separate return.
• E) None of these.

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Definitions:

Annual Demand

The total quantity of a product or service that is demanded over the course of a year.

Salvage Value

The estimated resale value of an asset at the end of its useful life.

Service Level

A measure of performance that represents the percentage of customer demands that are met without delay.

Lead Time

The timeframe between the initiation and completion of a process, such as from placing an order to its delivery.