On January 1, 2020, Adam gave Lou, her son, a 36-month certificate of deposit she had purchased on December 31, 2018, for $8,638. The certificate had a maturity value of $10,000 and the yield to maturity was 5% with interest compounded annually. On December 2, 2020, Adam also gave 500 shares of stock in Disney to Lou.  On November 30, 2020, Disney had declared a dividend of $1.00 per share payable to stockholders of record on December 5th.   Required: Determine the amount of interest and dividends (if any) that lou must include in his gross income for 2020?   Show computations to support your answer.

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Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.