On May 1, 2021, Miles purchased a taxable bond with a face value of $10,000. The bond matures on May 1, 2023, and has a stated interest rate of 6%. Miles paid $11,000 for the bond on the secondary market. He received one coupon payment of $600 on May 1, 2021; this was his only interest income for the year. He chooses annual accrual periods ending on May 1 of each year, and the amount of his bond premium amortization for 2022 is $325.

What is the total amount of taxable interest that should be reported on page 1 of Miles' Form 1040?

$275

$325

$600

$925