On September 1, 2019, George bought a $10,000 three-year GIC that pays 9% interest per year,...
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On September 1, 2019, George bought a $10,000 three-year GIC that pays 9% interest per year, compounded yearly. No interest is received until the maturity date of the GIC on August 31, 2022. Which one of the following statements is correct, assuming the figure is rounded to the nearest dollar? (a) In 2019, George must report $300 of interest income. (b) In 2020, George must report $927 of interest income. (c) In 2021, George must report $981 of interest inçome. (d) In 2022, George must report all interest earned on the GIC. On September 1, 2019, George bought a $10,000 three-year GIC that pays 9% interest per year, compounded yearly. No interest is received until the maturity date of the GIC on August 31, 2022. Which one of the following statements is correct, assuming the figure is rounded to the nearest dollar? (a) In 2019, George must report $300 of interest income. (b) In 2020, George must report $927 of interest income. (c) In 2021, George must report $981 of interest inçome. (d) In 2022, George must report all interest earned on the GIC.
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Information Given in Problem Principal amount 10000 Compounded Rate of Interest 9 compounded annuall... View the full answer
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
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