1. Mars Corp reported rental revenue of $2,210,000 in its cash basis federal income tax return for the year ended December 31, 201 Additional information is as follos:

Rents receivable December 31, 2011: $1,060,000

Rents receivable December 31, 2010: $800,000

Uncollectible rents written off during the fiscal year of 2011: $30,000

Under the accrual basis, Mars should report rental revenue of:

1. $1,920,000
2. $1,980,000
3. $2,440,000
4. $2,500,000