11. Eric, a cash basis taxpayer, owned 25% of Watson, Inc. stock. Watson, Inc. files a calendar year U.S. Corporate Income Tax Return Form 1120 employing the accrual method of accounting. Eric loaned Watson, Inc. $100,000 at the beginning of 2021 . The accrued interest on this loan was $5,000 as of December 31, 2022. Watson, Inc. paid Eric the \$5,000 in January of 2022. How should Eric report the interest income and Watson, Inc. report the interest expense from this transaction? A. Watson, Inc. Reports the expense in 2021 and Eric reports the income in 2022. B. None of these choices C. Watson, Inc. Reports the expense in 2022 and Eric reports the income in 2023. D. Watson, Inc. Reports the expense in 2021 and Eric reports the income in 2021