Jorge Purchased a Newly Issued $20,000 Corporate Bond for $19,500

Jorge purchased a newly issued $20,000 corporate bond for $19,500 on November 1, 2020. The maturity date of the bond is October 31, 2025 and the annual interest rate is 5%, paid on October 31 of each year. How much interest income should Jorge report on his 2020 and 2021 tax returns if he wants to minimize the interest recognized for tax purposes?

A) $0 in 2020 and $975 in 2021.
B) $0 in 2020 and $1,000 in 2021.
C) $167 in 2020 and $833 in 2021.
D) $167 in 2020 and $1,000 in 2021.