Marnie Purchased a Bond on August 15, 2012 for $2,100

Marnie purchased a bond on August 15, 2012 for $2,100. $200 of the purchase price represented accrued interest. She received $210 in interest income on the bond on December 1, 2012. What is the proper treatment of the $210 interest income for federal income tax purposes?

A) $200 return of capital, the $10 can be currently included as interest income or deferred until the bond is cashed.
B) Marnie can elect to include the $210 as interest income in 2012 or defer the reporting until she cashes the bond.
C) $210 taxable as interest income.
D) Report the total payment as taxable interest, then report $200 as an adjustment to income.