The taxpayer had incorrectly been using the cash method of accounting. For 2017, the company voluntarily changed to the accrual method, with the permission of the IRS. The unrealized receivables at the beginning of 2017 totaled $160,000. The unrealized receivables as of the end of 2017 totaled $80,000. As a result of the change in method for 2017, the IRC 481 adjustment under the most favorable treatment will cause the company to:

a. Increase its income for 2017 by $160,000.

b. Increase its income for 2017 by $80,000.

c. Increase its income for 2017 by $30,000.

d. Increase its income for 2017 by $40,000.

e. Increase its income for 2017 by $20,000.