On April 1, 2016, SBD Corp. paid $120,000 for rent on warehouse space one year in advance. On October 1, 2016, SBD Corp. entered into an agreement to rent out a different warehouse it was no longer using. This agreement calls for SBD to receive $8,000 per month from the renter, due and payable at the end of the 4-month lease term. At December 31, 2016, none of the rental payments from the renter had yet been received.

If SBD makes the appropriate adjusting entry, how much will be reported on the December 31, 2016 balance sheet as prepaid rent and rent receivable, respectively?

1. $30,000 and $12,000
2. $30,000 and $15,000
3. $30,000 and $24,000
4. $15,000 and $16,000

Explain the reasoning behind the answer.