Mark Mayer, a Cash Basis Taxpayer, Leased Property on June

Mark Mayer, a cash basis taxpayer, leased property on June 1, 2012, to Perry Purly at $325 a month. Perry paid Mark $325 as a security deposit which will be returned at the end of the lease. In addition, Perry paid $650 in advance rent which is to be applied as rent to the last two months in the lease term. fte lease is to run for a two- year period. What is Mark's rental income for 2012?

A) $1,950
B) $2,275
C) $2,600
D) $2,925
E) $3,250