A customer paid $60,000 to ABC Corp. on December 30, 2015, to perform services evenly over time from January 1, 2016 through December 31, 2019. If ABC fails to make adjusting entries related to that transaction, then ________ would be understated (too low) by ________ each year.

a.

net income, $15,000

b.

assets, $12,000

c.

expenses, $12,000

d.

liabilities, $15,000