Theresa; a calendar year, cash basis taxpayer, had the following transactions during 2019: On March 31, 2019, she sold a corporate bond for $9,800. She purchased the bond on July 1, 2014 for $10,000. The sales price of $9,800 included $200 of accrued interest. On January 1, 2019, she began receiving payments from an annuity contract she purchased for $100,000. Under the terms of the contract, she will receive $500 per month for her life. The IR table indicated her life expectancy is 22.4 years from the annuity starting date. She received $6,000 of payments during 2019, She received $600 from a City of Houston bond she has owned since July 15, 2015. She received $75 of interest on a state income tax refund. On July 1, 2019, she purchased a certificate of deposit for $20,000. The certificate's maturity value in two years (June 30, 2021) is $21,218. The effective interest rate is 3%. On January 2, 2019, she purchased a Series EE U.S. Savings Bond for $1,000. The redemption value at December 31, 2019 was $1,030. She filed no elections with respect to US Savings Bonds. How much interest income must Theresa recognize for 20197 $600 tax-exempt interest: $2,111 taxable interest $600 tax-exempt interest: $5,039 taxable interest O $690 tax exempt interest; $2,021 taxable interest O $675 tax-exempt interest: $2,036 taxable interest