Question: On May 1 , 2 0 2 4 , Jackie Bryant purchases an investment contract with a maturity value of $ 2 0 0 ,

On May1,2024, Jackie Bryant purchases an investment contract with a maturity value of $200,000. These investment contracts were issued May1,2024, and mature on April30,2028, with annual interest of 66%. Interest is paid for the period May1,2024, to December31,2025, on December31,2025. The remaining interest is only payable on April30,2028. With respect to the minimum interest that must be recognized for income tax purposes, which of these statements is correct?
A.
Jackie will not have to include any interest in income for 2024 and $12,000 in 2025.
B.
Jackie will not have to include any interest in income for 2024 and $20,000 in 2025.
C.
Jackie will not have to include any interest in income for2024 or 2025.
D.
Jackie will have to recognize $8,000 in income for 2024 and $12,000 in 2025.

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