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Question - Camilla Brown wants to help her daughter, Olivia, save for her college education. When Olivia turned 16, Camilla put $5,000 into a Canada Savings Bond in her daughter's name, with a 1-year term. The Canada Savings Bond renews on an annual basis. On its maturity in 2018, Olivia rolled the $5,000 into another Canada Savings Bond for a term of 1 year, and rolled the interest earned during the first year into a second 1-year Canada Savings Bond for $600. In 2018, the interest earned on the two Canada Savings Bonds was $600 and $72 respectively.
How much of this interest, if any, must Ms. Brown report on her 2018 income tax return?
a) Nil
b) $72
c) $600
d) $672
e) None of the above
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