Under the Original Issue Discount (OID) Rules as Applied to a Three-Year

question 71

Multiple Choice

Under the original issue discount (OID) rules as applied to a three-year certificate of deposit:

• A)All of the income must be recognized in the year of maturity by a cash basis taxpayer.
• B)The OID will be included in gross income for the year of purchase.
• C)The interest income will be the same each year.
• D)The interest income will be greater in the third year than in the first year.
• E)None of these is correct.

Understand the concept of cross-price elasticity of demand.

Learn how the price elasticity of demand varies with the type and characteristics of goods.

Know the difference in price elasticity between substitutes and complementary goods.

Learn the impact of price changes on the demand for related goods (complements and substitutes).

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Definitions:

Positive Reinforcement

A method in behaviorism where the introduction of a desirable or pleasant stimulus following a behavior increases the likelihood of that behavior being repeated.

Shaping

A method of training by which successive approximations toward a desired behavior are reinforced.

Successive Approximation

A method used in operant conditioning that rewards behaviors progressively closer to a desired one.

Discrimination

Discriminatory practices towards various groups based on race, age, gender, or disability, characterized by unfair or biased treatment.