Jason Owns Blue Corporation Bonds (Face Value of $10,000),purchased on January

Jason owns Blue Corporation bonds (face value of $10,000) ,purchased on January 1,2013,for $11,000.The bonds have an annual interest rate of 8% and a maturity date of December 31,2022.If Jason elects to amortize the bond premium,what is his taxable interest income for 2013 and the adjusted basis for the bonds at the end of 2013 (assuming straight-line amortization is appropriate) ?

A) $800 and $11,000.
B) $800 and $10,900.
C) $700 and $11,000.
D) $700 and $10,900.
E) None of the above.