Wilma has a $25,000 certificate of deposit (CD) at the local bank. The interest on this certificate, $1,000, was credited to her account this year but she must pay an early withdrawal penalty if she cashes in the CD before next year. Which of the following is a true statement?
A. Wilma must include the $1,000 of interest in her income this year.
B. Wilma must include the $1,000 of interest in her income when she cashes the CD.
C. Wilma must include the $1,000 of interest in her income this year only if the bank waives the early withdrawal penalty.
D. Wilma must include the $1,000 of interest in her income next year if she does not pay the early withdrawal penalty.
E. All of these
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Wilma has a $25,000 certificate of deposit (CD) at the local bank. The interest on this certificate, $1,000, was credited to her account ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Where in an e-mail would you find information about the action required? A. In the subject line B. In the message C. In the greeting D. In the To field
Answers (1)
Panther Co. had a quality-assurance warranty liability of $359,000 at the beginning of 2018 and $308,000 at the end of 2018. Warranty expense is based on 3% of sales, which were $44 million for the year.
Answers (1)
The initials GAAP stand for a. general accounting procedures b. generally accepted accounting principles c. generally accepted accounting practices d. generally accepted plans
Answers (1)
Mrp works best if the inventory items have dependent demand. True or false?
Answers (1)
In the wake of the BP oil spill in the Gulf of Mexico, a slew of BP advertisements touted BP's commitment to protecting and preserving the environment, not only of the Gulf, but everywhere its brand reaches.
Answers (1)
New Questions in Business
I need answers a, b, c, or d
Answers (2)
How much money are you making on your investment in a year?
Answers (1)
Rent controls force landlords to price apartments below the equilibrium price level. An immediate effect is a shortage (excess demand) of apartments, because the quantity of apartments demanded is greater than the quantity supplied at the regulated
Answers (1)
Suppose that a worker in Freedonia can produce either 6 units of corn or 2 units of wheat per year, and a worker in Sylvania can produce ei ther 2 units of corn or 6 units of wheat per year. Each nation has 10 workers.
Answers (1)
How can business taxes positively affect an economy? A If taxes are low, more businesses can be created. B If taxes are low, then businesses will give more of their earnings away.
Answers (1)