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NEW QUESTION: 1
A bank has given a customer a merchandise gift with a fair market value of $25.00 for opening a deposit account. Which
of the following statements
describes the proper reporting status of this gift?
A. The fair market value of the gift is reported to the customer on the periodic statement.
B. The cost of the gift is credited to the customer's account as a bonus, increasing the account balance.
C. If the cost of the gift is under $20.00, it is not reportable to the IRS.
D. The fair market value of the gift is added to the interest paid and reported on Form 1099-INT.
Answer: D

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