Jorge purchased a newly issued $20,000 corporate bond for $19,500 on November 1, 2015.The maturity date of the bond is October 31, 2020 and the annual interest rate is 5%, paid on October 31 of each year.How much interest income should Jorge report on his 2015 and 2016 tax returns if he wants to minimize the interest recognized for tax purposes?

$0 in 2015 and $975 in 2016.

$0 in 2015 and $1,000 in 2016.

$167 in 2015 and $833 in 2016.

$167 in 2015 and $1,000 in 2016.