An Individual Who Forfeits a Penalty for Prematurely Withdrawing a Certificate

question 111

True/False

An individual who forfeits a penalty for prematurely withdrawing a certificate of deposit (CD)is allowed to net the penalty against the interest income from the CD, reducing the amount of gross income reported.

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Definitions:

Deposition

A pretrial question and answer proceeding, usually conducted orally, in which a party or witness answers an attorney's questions. The answers are given under oath, and the session is recorded.

Affirmative Defense

A defense in which the defendant introduces evidence to negate or reduce liability, rather than simply denying the plaintiff's allegations.

Answer

A defendant’s response to a plaintiff’s complaint.

Cross-Claim

A claim brought against a co-party in the same side of a legal action, asserting wrongdoing that contributed to the original lawsuit.