All of the Following Are Considered "Constructive Receipt" of Income

question 62

Multiple Choice

All of the following are considered "constructive receipt" of income, except:

• A) Lori was informed her check for services rendered was available but she did not pick it up.
• B) Pierre earned income that was received by his agent but was not received by Pierre.
• C) Jacque bought a 9-month certificate of deposit in November 2012. It earned $200 interest in 2012. She can withdraw the principal and interest in 2012 if she pays a penalty of one month's interest ($100).
• D) A payment on a sale of real property place in escrow pending settlement at which time title would convey.

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Definitions:

Annual Percentage Rate

A measure that represents the actual yearly cost of funds over the term of a loan, including any fees or additional costs associated with the transaction.

Overdraft Fee

A charge imposed by a bank when a transaction exceeds the account's available balance, resulting in a negative balance.

Maintenance Fee

A periodic charge imposed by banks, credit unions, or HOAs to cover the cost of services or upkeep.

Compounds Interest Monthly

The process where the interest earned on an investment is calculated monthly and added to the principal sum, leading to an increase in the total amount of interest earned over time.