Essay
On January 1, 2017, Faye gave Todd, her son, a 36-month certificate of deposit she purchased December 31, 2015, for $8,638. Faye gave Todd 1,000 shares of ABC, Inc., on December 2, 2017. The certificate had a maturity value of $10,000 and the yield to maturity was 5%. On November 30, 2017, ABC, Inc., had declared a dividend of $1.00 payable to stockholders of record on December 5th. How much interest and dividends should Todd include in his gross income for 2017?
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Todd must report $454 of interest income...View Answer
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