Adrian $(53)$ purchased a $$10,000,13-$week Treasury bill as a short$-$term investment. He paid $$9,960$ for the security, which was issued on July $17,2023.$ When the bill matured on October $16,2023,$ Adrian received $$10,000.$ How is the $$40$ in interest that he earned on this investment reported on his return?

As accrued interest on Schedule B$,$ Interest and Ordinary Dividends.

As tax$-$exempt interest on line $2$a of his Form $1040.$

As tax$-$exempt interest that is taxable for the alternative minimum tax $($AMT$),$ reported only on Form $6251.$

As taxable interest on line $2$b of his Form $1040.$