Durango Corp. maintains its accounting records on the cash basis but restates its financial statements to the accrual method of accounting. Durango had $110,000 in cash-basis pretax income for 2023. The following information pertains to Durango balance sheets for December 31, 2022 and 2023:

	2022	2023
Inventory	51,000	40,000
Prepaid Expenses	6,000	13,000
Unearned Revenues	400	300

Under the accrual method, what amount of income before taxes should Durango report in its December 31, 2023 income statement?

a.

$113,700

b.

$114,100

c.

$113,900

d.

$105,900

e.

$106,100