bob uses the cash method of accounting during the tax year calendar year , he had the following income and expenses

interest on savings (credited to to his account on january 2 of next year $ 68

bussiness insurance policy (2 years prepaid, starting july 1) 1,110

business expenses for items ordered and received on december 15 (payment made on january 5 of the next year ) 814

business expenses for items purchases on december 10 858

interest received on a 5year certificate of deposit (left in cd account to compound) 910

what amount would bob report for income and expenses ?

a.income:$978, expenses $1947

b. income $910and expenses $1958

c.income 910$expenses 1,133

d income 178 and expenses 1133