At the beginning of his current tax year, David invests $13,030 in original issue U.S. Treasury bonds with a $10,000 face value that mature in exactly 20 years. David receives $500 in interest ($250 every six months) from the Treasury bonds during the current year, and the yield to maturity on the bonds is 3 percent

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

Answer is not complete.

Semiannual Period	Adjusted Basis of Bond at Beginning of Semiannual Period	Interest Received	Premium Amortization	Reported Interest
1	$13,030selected answer correct	$250selected answer correct	??	??
2	????	250selected answer correct	??	??
Yearly Total	??	$500	$0	$0

B. How much interest will he report this year if he does not elect to amortize the bond premium?