17. Theresa, a cash basis taxpayer, purchased a bond on July 1, 2014, for $10,000, plus $400 of accrued interest. TI bond paid $800 of interest each December 31. On March 31, 2019, she sold the bond for $9,800, which included $200 of accrued interest. a. Theresa has $200 interest income and a $400 loss from the bond in 2019. b. Theresa has $200 interest income and a $200 gain from the bond in 2019. c. Theresa has a $100 loss from the sale of the bond and no interest income. d. Theresa's loss on the sale of the bond is $600. e. None of these. 10,400 Cove 9,600 -400