On January 1, 2020, Jason purchased a bond paying interest at 5% for $40,000. On March 31, 2020, he gave the bond to Jenny. The bond pays $2,000 interest on December 31, 2020. Jason and Jenny are cash basis taxpayers. When Jenny collects the interest on December 31, 2020:

a. As long as both come to an agreement, Jason and Jenny can split the $2,000 in taxable income however they see fit.

b. Jason includes $500 in taxable income. Jenny includes $1,500 in taxable income.

c. Jenny includes $2,000 in taxable income.

d. Jason includes $2,000 in taxable income.