Final answer:
Mary should recognize $413.33 in income from her certificate of deposit in 2015. In 2024, she should recognize $360 in income from her Series EE bond, assuming there are no changes to the bond conditions and she elects to report the annual increase in value as interest income.
Step-by-step explanation:
For the 3-year certificate of deposit purchased at $8,760 with a maturity value of $10,000, Mary's income to be recognized in 2015 can be calculated using the simple interest formula, considering the certificate has a 4.5% yield. Given that the certificate matures in 3 years, the total interest earned would be $10,000 - $8,760 = $1,240. However, we need the amount of interest earned in 2015 specifically, which would be one-third of the total interest since it's a 3-year deposit. Hence, the income for 2015 from the certificate of deposit would be $1,240 / 3 = $413.33.
Concerning the Series EE bond purchased for $6,400 with a maturity value of $10,000 in 10 years, if Mary follows the accrual method used for Series EE bonds, she could choose to report the increase in value each year as interest income. For a bond increasing from $6,400 to $10,000 over 10 years, this suggests an annual increment of ($10,000 - $6,400) / 10 = $360. Therefore, Mary should recognize $360 as income from the Series EE bond in 2024, assuming she elects this method and there are no changes in the bond's conditions.