Pennsylvania Taxation of Treasury Bonds Purchased on the Secondary Market

How does Pennsylvania tax the following items for TREASURIES (purchased on the secondary market):

• Accrued Market Discount (1099-B Box 1f)
• Bond Premium on US Treasuries (1099-INT Line 12)
• Accrued Interest Paid on Purchases (1099B)

Example:

• Treasury Interest: $1000
• Accrued Market discount: $300
• Bond Premium: $100
• Accrued Interest Paid: $200

Federal Taxable Interest = 1000 + 300 – 100 – 200 = $1000

PA State Taxable Interest = ????

Thank you.