On December 26, 2014, Company X leased equipment to Jane at $600 per month for 36 months beginning January 1, 2015. Jane paid the first and last month's rent at the time the lease was signed. Jane also paid a $1,500 security deposit. Company X must recognize as income for the lease:
a. $0 in 2014, if Company X is an accrual basis taxpayer.
b. $7,800 in 2015, if Company X is a cash basis taxpayer.
c. $2,700 in 2014, if Company X is a cash basis taxpayer.
d. $1,200 in 2014, if Company X is an accrual basis taxpayer.