eBay is an example of a merchant e-commerce company

For the year ended December 31, 2017, Don Raff earned $1,000 interest at Ridge Savings Bank on a certificate of deposit scheduled to mature in 2019. In January 2018, before filing his 2017 income tax return, Raff incurred a forfeiture penalty of $500 for premature withdrawal of the funds. Raff should treat this $500 forfeiture penalty as a

a. Reduction of interest earned in 2017 so that only $500 of such interest is taxable on Raff's 2017 return. b. Deduction from 2018 adjusted gross income, deductible only if Raff itemizes his deductions for 2018. c. Penalty not deductible for tax purposes. d. Deduction from gross income in arriving at 2018 adjusted gross income.

FYI messages should be in writing, using a direct approach

Indicate whether the statement is true or false.