Bob Buttons, a cash basis calendar year taxpayer, owns and operates an apartment building. During 2016, he received the following payments:
Lease cancellation fee from an old tenant $500
Rent from a new tenant covering the period from July 1, 2017 5,000
Security deposit on June 30, 2016, to be returned to the tenant if no damage has occurred 700
What is the amount of Bob's gross rental income for 2016?
A) $1,750
B) $2,450
C) $5,500
D) $6,200