melina purchased a $10000 corporation bond on July1,2018. The bond has a started interest rate of 5%; payable anually on Nov1. since Melina purchased the bond between interest payment dates the interest income on Schedule B, interest and ordinary dividends will reported as

a. $251 , the amount of interest earned f rommJuly1 through December 31

b. $332 , her proportionate share of interest as taxable income. no adjustments

c. $500, the full interest payment, then minus $332 , the amount accrued interest, as adjustment

d. $500 , the entire interest payment . no further adjustment necessary as the amount of accrued interest was added to Melinas basis at the time of purchase.