On January 1, 2020, Tim purchased a bond paying interest at 6% for $30,000, its face amount. On March 31, 2020, when the bond had accrued interest of $450, he gave the bond to his daughter, Jane. The bond pays $1,800 interest on January 1 each year. Tim and Jane are cash basis taxpayers, and Jane collects and keeps the interest paid in January of 2021:

a. Tim must report $1,800 interest income for 2020.

b. Jane must report $1,800 interest income for 2021.

c. Jane reports $1,350 of interest income in 2021, and Tim reports $450 of interest income in 2020.

d. Jane reports $1,350 of interest income in 2021, and Tim reports $450 of interest income in 2021.

e. Jane reports $450 of interest income in 2020, and Tim reports $1,350 of interest income in 2021.