Samantha and Her Son, Brent, Are Cash Basis Taxpayers

True/False

Samantha and her son, Brent, are cash basis taxpayers. Samantha gave Brent a corporate bond with a face amount and fair market value of $10,000. On the date of the gift, March 31, 2017, the accrued interest on the bond was $100. On December 31, 2017, Brent collected $400 interest on the bond. Brent must include in gross income the $300 interest earned after the date of the gift.