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Freddy purchased a certificate of deposit for $20,000 on July 1,2024. The certificate's maturity value...

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Accounting

Freddy purchased a certificate of deposit for $20,000 on July 1,2024. The certificate's maturity value in two years (June 30,2026) is $21,218, yielding 3% before-tax interest.
a. Freddy must recognize $1,218 gross income in 2024.
b. Freddy must recognize $300(0.03$20,0000.5) gross income in 2024.
c. Freddy must recognize $690($1,2180.5) gross income in 2026.
d. Freddy must recognize $1,218 gross income in 2026.
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