Hi Julie S,
I tried not checking any box on the "Any of these less common items" page. You do get the "D" in box 1f, however the basis does not get adjusted. So then it seems the accrued market discount is getting taxed twice : once as interest (which is correct) and also as a capital gain on the transaction (which is incorrect).
But I need to look into it more deeply to see exactly what's going on. I'm going to play a little with the values and see what happens.
