Interest Income $($LO $2\mathrm{.}9)$

Indicate whether the following statements are "True" or "False" regarding the methods that an individual taxpayer may use to recognize interest earned on Series I Bonds.

Line Item Description Line Item Description True$/$False

a$.$ The interest may be reported in the year the bonds are cashed in$.$

b$.$ Taxpayers must obtain permission to wait to report the interest in the year of redemption.

c$.$ Taxpayers may elect to report the increase in redemption value each year.

d$.$ Once either method is elected, the taxpayer must use it for all bonds currently held or acquired in the future.