A company is the real estate business and rents offices to clients. On the first day of their accounting year, they sign an agreement with a new client for the duration of one year for a total of $120,000. They require two months of rent in advance from the client, plus $5,000 as a bond to be deposit with a trustee. On balance date (i.e., the last day of their accounting year) the firms has earned ... a. $145,000 b. $140,000 c. $135,000 d. $125,000 e. $120,000