Amy Finch had the following cash receipts during 2007:

Dividend from a mutual insurance company on a life insurance policy

$500

Dividend on listed corporation stock; payment date by corporation was 12/30/06, but Amy received the dividend in the mail on 1/2/07

875

Total dividends received to date on the life insurance policy do not exceed the aggregated premiums paid by Amy. How much should Amy report for dividend income for 2007?

  1. $1,375
  2. $ 875
  3. $ 500
  4. $0