ControlBill sells professional services based on long$-$term contracts. He knows about the full$-$inclusion and one$-$year deferral rules for prepaid service income. He understands the value of tax deferral, but he also knows that bookkeeping using the full$-$inclusion rule is easier. He expects to receive a total of $$124,000$ of prepaid service income, and these contracts average about $40$ months. He estimates that he earns $10\%$ of the prepaid amount in the year received. Bill's tax rate is $28\%$ and he has a $9\%$ after$-$tax discount rate.

What is the present value of the tax savings from using the one$-$year deferral rule instead of the full$-$inclusion rule?

a$.$$$34,700$

b$.$$$28,700$

c$.$ $$6,100$

d$.$ $$31,200$

e$.$ $$2,600$