Which of the following must be classified as "portfolio income?"
I.Interest income on CDs from First National Bank.
II.Loss realized from the sale of one-half of his stock shares in Lockleed Corp. Lockleed is qualified small business stock.

A)Only statement I is correct.
B)Only statement II is correct.
C)Both statements are correct.
D)Neither statement is correct.

Question

Which of the following must be classified as "portfolio income?"
I.Interest income on CDs from First National Bank.
II.Loss realized from the sale of one-half of his stock shares in Lockleed Corp. Lockleed is qualified small business stock.
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A)Only statement I is correct.
B)Only statement II is correct.
C)Both statements are correct.
D)Neither statement is correct.

Quizplus · Accepted Answer

Portfolio income typically includes interest, dividends, and capital gains from the sale of stocks. Therefore, both interest income from CDs (Certificate of Deposits) and the loss realized from the sale of stock shares fall under the category of portfolio income.

Which of the Following Must Be Classified as "Portfolio Income