On December 31, 2019, Krug Company prepared adjusting entries that included the following items: Depreciation expense: $26,000. Accrued sales revenue: $24,000. Accrued expenses: $16,000. Used insurance: $3,000; the insurance was initially recorded as prepaid. Rent revenue earned: $1,000; the rent was initially prepaid by the tenant and credited to unearned rent revenue. If Krug Company reported pretax income of $180,000 prior to the adjusting entries, how much is Krug's pretax income after the adjusting entries? Multiple Choice $185,000. $163,000. O $160,000. $162,000