Taxation and the return freeze option

You have a $1000 Stock Market-Indexed Guaranteed Investment issued in December 1997 for a 3 year term and the return is to be frozen on the second anniversary. In December 1999, you exercise the return freeze option. At this time, you know how much you will get at maturity and must include, in your 2000 returns, the interest incurred from December 1998 to December 2000, established, for example, at $219 as per the variation of the stock market on the freeze date. The interest appears on the documents issued by the caisse for the 2000 taxation year. In 2001, you receive the total return established at $346 but the documents you receive indicate only the interest incurred from December 2000 to December 2001, that is $127, and you must include this amount in your income from 2001.