On January 5,2014,Tim Purchased a Bond Paying Interest at 6

On January 5,2014,Tim purchased a bond paying interest at 6% for $30,000.On March 31,2014,he gave the bond to Jane.The bond pays $1,800 interest on December 31.Tim and Jane are cash basis taxpayers.When Jane collects the interest in December 2014:

A) Tim must include all of the interest in his gross income.
B) Jane must report $1,800 gross income for 2014.
C) Jane reports $1,350 of interest income in 2014,and Tim reports $450 of interest income in 2014.
D) Jane reports $450 of interest income in 2014,and Tim reports $1,350 of interest income in 2014.
E) None of these is correct.