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

question 114

Multiple Choice

Freddy purchased a certificate of deposit for $20,000 on July 1, 2012.The certificate's maturity value in two years (June 30, 2014) is $21,218, yielding 3% before-tax interest.

• A)Freddy must recognize $1,218 gross income in 2012.
• B)Freddy must recognize $1,218 gross income in 2014.
• C)Freddy must recognize $600 (.03 ´ $20,000) gross income in 2014.
• D)Freddy must recognize $300 (.03 ´ $20,000 ´ .5) gross income in 2012.
• E)None of the above.

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Definitions:

Imagines

The act of forming mental images or concepts of what is not actually present to the senses.

Ballet Dancer

An individual trained in ballet, a classical dance form characterized by grace, precision, and disciplined technique.

Memorization Technique

A method or strategy used to enhance the ability to remember information.

Memory Skills

Techniques and methods used to improve the ability to retain and recall information.