Freddy Purchased a Certificate of Deposit for $20,000 on July

question 103

Multiple Choice

Freddy purchased a certificate of deposit for $20,000 on July 1, 2018. The certificate's maturity value in two years (June 30, 2020) is $21,218, yielding 3% before-tax interest.

• A) Freddy must recognize $1,218 gross income in 2018.
• B) Freddy must recognize $1,218 gross income in 2020.
• C) Freddy must recognize $600 (.03 × $20,000) gross income in 2020.
• D) Freddy must recognize $300 (.03 × $20,000 × .5) gross income in 2018.
• E) None of these.

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Definitions:

Nature

The phenomena of the physical world collectively, including plants, animals, the landscape, and other features and products of the earth, as opposed to humans or human creations.

Nurture

The influence of environmental factors and experiences on an individual's development, as opposed to genetic influences.

Intelligence

Mental quality consisting of the ability to learn from experience, solve problems, and use knowledge to adapt to new situations.

Biology

The examination of life and living entities, covering aspects such as their architecture, functions, development, origins, evolutionary progress, and geographic spread.