4. Bill and Ann have a rental house. On June 1 they rented the house to a new tenant, Alice. Alice paid them the following fees: First month's rent $1,200 Security deposit (which will also be the last month's rent) $1,200 Pet security deposit (returned when Alice moves out) $300 Which of the following is correct? a) Bill and Ann must report $2,700 as income this year. b) Bill and Ann must report $1,200 as income this year. C) Bill and Ann must report $2,400 as income this year. d) Bill and Ann must report $1,500 as income this year