Get your taxes done using TurboTax

This is an update to my comment. I deleted my step by step entries and re-entered them. Then I went to forms view and searched for "errors". It took me to "Capital Gain and Loss Worksheet" Part IV, "Accrued Interest to Schedule B". There I entered the amount of "Accrued Market Discount" and then the income was put into Schedule B.

 

So all is well.