At the beginning of his current tax year David invests $13,410 in original issue U.S. Treasury bonds with a $10,000 face value that mature in exactly 10 years. David receives $540 in interest ($270 every six months) from the Treasury bonds during the current year, and the yield to maturity on the bonds is 3.4 percent. (Round your intermediate calculations and final answers to the nearest whole dollar amount.)

a) How much interest income will he report this year if he elects to amortize the bond premium?

Semiannual

Period

Adj. Basis of Bond at

Beginning of

Semiannual Period

Interest

Received

Premium

Amortization

Reported

Interest

1134102Yearly Total