Exercise 13-27 (Algorithmic) (LO. 1) On July 1, 2021, Katrina purchased tax-exempt bonds (face value of $110,500) for $121,550. The bonds mature in five years, and the annual interest rate is 3%. If an amount is zero, enter "0". Determine any allocation based on months (not days). a. How much interest income and/or interest expense must Katrina report in 2021? The interest income Katrina must include in gross income in 2021 is $ The interest expense Katrina may deduct in 2021 is $ 0 0