On July 1, 2016, Harold paid $10,000 for a ten-year bond with a stated interest rate of 5%, payable annually on July 1. On April 1, 2017, 274 days after purchasing the bond, Harold sold the bond to Sam for $10,050. Which of the following should be reported on Harold's return? $0 of interest income and $50 of short-term capital gain. $125 of interest income and $50 of short-term capital gain. $375 of interest income and $50 short-term capital gain. $376 of interest income and $375 of short-term capital loss.