Denise Died April 1 and Owned Several Bonds That Paid

question 65

Multiple Choice

Denise died April 1 and owned several bonds that paid interest March 31 and September 30. Also, she owned stock that paid dividends quarterly on March 31, June 30, September 30, and December 31. Denise's estate received the interest and dividends on the payment dates. What should be included in Denise's gross estate?

• A)all interest and dividends received in the year of death
• B)only interest and dividends received prior to the date of death
• C)only interest and dividends received after the date of death
• D)none of the interest and dividends received

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Definitions:

Compound Rate

The rate at which interest is calculated on the initial principal and also on the accumulated interest of previous periods.

Annually

Occurring once every year or relating to a period of one complete year.

Interest

The cost of borrowing money, represented as a percentage of the total amount loaned.