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

question 72

Multiple Choice

Freddy purchased a certificate of deposit for $20,000 on July 1, 2017. The certificate's maturity value in two years (June 30, 2019) is $21,218, yielding 3% before-tax interest.

• A)Freddy must recognize $1,218 gross income in 2017.
• B)Freddy must recognize $1,218 gross income in 2019.
• C)Freddy must recognize $600 (.03 × $20,000) gross income in 2019.
• D)Freddy must recognize $300 (.03 × $20,000 × .5) gross income in 2017.
• E)None of these.

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Definitions:

Pillars of Character

Core ethical values that form the foundation of a person's character and moral decision-making, often cited as trustworthiness, respect, responsibility, fairness, caring, and citizenship.

Ethical Behavior

Refers to the practice of conducting oneself according to recognized moral principles or standards of right and wrong in both personal and professional settings.

Injustices

Situations or actions that are not fair or violate principles of justice.

Ethical Issue

A situation or problem that requires an individual or organization to choose between alternatives that must be evaluated as right or wrong.