Irene invested $100,000 in a three-year guaranteed investment certificate (GIC) on September 1, Year 1. The GIC pays interest of 1% in Years 1 to 3. The interest compounds and is reinvested each year on the anniversary date of the GIC. The full amount principal and all compounded interest will be received upon maturity on August 31, Year 4.

Required:

Determine the minimum amount of income that Irene must report for Year 1 through Year 4 in respect of this investment.