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Gloria purchased a corporate bond on January 25, 2020 and, on the same day, gave it to her 16-year-old daughter, Jenny. Jenny turned 17 on

Gloria purchased a corporate bond on January 25, 2020 and, on the same day, gave it to her 16-year-old daughter, Jenny. Jenny turned 17 on April 1, 2020. The bond earned interest of $600 and was sold resulting a taxable capital gain of $300during the year 2020. Which one of the following statements is true?

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Neither Jenny nor her mother has to report any interest income or taxable capital gains in 2020.

Jenny must report the entire $600 of interest income and taxable capital gain of $300 in her 2020 personal tax return.

Jenny must report the taxable capital gain of $300 on her 2020 personal tax return and her mother must report the $600 of interest on her 2020 personal tax return.

Gloria must report $600 of interest income and the Taxable capital gain of $300 in her 2020 personal tax return.

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