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?
Get 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 there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
A customer service representative earns 13 an hour and he works 24 hours a week. What is his weekly wage
Answers (1)
What is the major difference between a periodic and a perpetual inventory system?
Answers (1)
What should you do if a caller needs a particular question answered and your're completely uncertain about whom the caller should contact
Answers (1)
Zoe Corporation has the following information for the month of March: Cost of direct materials used in production$17,811 Direct labor29,363 Factory overhead32,472 Work in process inventory, March 120,353 Work in process inventory, March 3119,710
Answers (1)
Sutton co. sells cleaning service contracts for cash. the service contracts are for a one-year, two-year, or three-year period. cash receipts from contracts are credited to unearned service revenue.
Answers (1)
New Questions in Business
The fundamental relationship between savings and investment spending in an economy is that: A. savings will increase as investment spending decreases. B. investment spending and savings are always equal. C.
Answers (1)
The best explanation of why Gulf airlines are giving U. S. legacy carriers stiff competition is that the Gulf carriers: A. offer more special deals to business travelers than do the U. S. legacy carriers. B. have taken advantage of U. S.
Answers (1)
It costs Fortune Company $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. A foreign wholesaler offers to purchase 1,000 scales at $15 each.
Answers (2)
An American manufacturer has been asked to provide construction equipment to a foreign government. The contract is for a sizable amount, so the manufacturer wants to protect itself should the foreign government refuse to pay for the equipment once
Answers (1)
Use the following information to answer the next three questions. Periods Future Value of $1 at 12 Percent Future Value of Ordinary Annuity of $1 at 12 Percent Present Value of $1 at 12 Percent Present Value of Ordinary of $1 at 12 Percent 1 1.120 1.
Answers (1)