1. In 2004, Landlord leased a building to Tenant for a period of 15 years at a monthly rental of $1,000 (beginning on July 1, 2004) with no option to renew. At that time, the building had a remaining estimated useful life of 20 years. Prior to taking possession of the building on July 1, 2004, Tenant made improvements at a cost of $18,000. The improvements had an estimated useful life of 20 years at the commencement of the lease period. The lease expired on June 30, 2019, at which point the improvements had a fair market value of $2,000. What amount should Landlord include in his/her gross income for 2019? Assume that all rental payments were made on the first day of each month for that month. A $ 5,000 B 8,000 12,000 D 24,000 E None of the above