On December 31, 2021, HPI prepared adjusting entries that included the following items: Depreciation expense: $31,000 Accrued sales revenue: $29,000 Accrued expenses: $12,000 Used insurance: $9,000 (the insurance was initially recorded as prepaid) Rent revenue earned: $7,000 (the rent was initially prepaid by the tenant and credited to unearned rent revenue) If HPI reported pretax income of $120,000 prior to the adjusting entries, how much is HPI's pretax income after the adjusting entries? $113,000 $106,000 $97,000 $128,000 $104,000