Freddy purchased a certificate of deposit for @20,000 on July 1, 2015. The certificate's maturity value in two years (June 30, 2017) is $21,218, yielding 3% before-tax-interest.

a. Freddy must recognize $1,218 gross income for 2015.

b. Freddy must recognize $1,218 gross income in 2017.

c. Freddy must recognize $600 (.03 x $20,000) gross income in 2017.

d. Freddy must recognize $300 (.03 x $20,000 x .5) gross income in 2015.