Figure 4-1 -Refer to Figure 4-1.Tony and Liz Have Just Inherited $25,000.Which

Figure 4-1

-Refer to Figure 4-1.Tony and Liz have just inherited $25,000.Which of the following statements is true?

A) The $25,000 will be taxable income in the year received.
B) The $25,000 is an exclusion for federal income taxes.
C) They should invest this money in corporate bonds to save on taxes.
D) The $25,000 will be taxable income in the year received, and they should invest this money in corporate bonds to save on taxes.