Question: illary deposited $ 5 , 0 0 0 with a bank and borrowed $ 5 , 0 0 0 from the bank to make up

illary deposited $5,000 with a bank and borrowed $5,000 from the bank to make up the $10,000 minimum deposit required to buy a 6-month certificate of deposit. The certificate earned $575 at maturity in 2021, but she only received $265, which represented the $575 she earned minus $310 interest charged on the $5,000 loan. The bank gives Hillary a Form 1099-INT for 2023 showing the $575 interest she earned. The bank also gives her a statement showing that she paid $310 interest for 2023. What amount must Hillary include in her income?
A. $0B. $265C. $310D. $575

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!