On January 1, 2022, Frank, accrual basis taxpayer, loaned his daughter Diana, $60,000. Diana used the funds as a down payment for her residence. The Federal rates was 5%, and Floyd charged Diana 2% interest. Diana had dividend and interest income of $2,100 for the tax year.

Frank also gave his son, Alex, Atlas Corporate bonds with a face amount of $12,000 and a 3% stated annual interest rate. The gift was made on February 1, 2022 and the interest was paid on March 31,2022. How much total interest income (including any imputed interest) should Frank include in his gross income for 2022?

a) $2,460

b) $1,830

c) $1,860

d) $1,230

e) $1,260