ACCT324 Week 2 Quiz 2017

Question Question 1.1. (TCO 2) On June 30, 20X2, Jill, a cash basis taxpayer, gave Tina a bond with a $25,000 face amount that pays $2,500 interest each December 31. When Tina collected the interest on December 31, 20X2, _____. (Points : 2) Jill must include all of the interest in her gross income Tina must include all of the interest in her gross income Jill must report $1,250 interest income, and Tina must report $1,250 interest income Jill must recognize $1,250 of interest income at the time ...

Question Question 1.1. (TCO 2) On June 30, 20X2, Jill, a cash basis taxpayer, gave Tina a bond with a $25,000 face amount that pays $2,500 interest each December 31. When Tina collected the interest on December 31, 20X2, _____. (Points : 2) Jill must include all of the interest in her gross income Tina must include all of the interest in her gross income Jill must report $1,250 interest income, and Tina must report $1,250 interest income Jill must recognize $1,250 of interest income at the time ...