We are a Telecom company and we signed on 1 October N a new contract with a client. The contract price is 8,000, paid cash and the contract covers the period from 01/10/N to 31/03/N+1. Indicate the correct answer(one only).

In N, this transaction has no impact on profits but increases cash by 8000

In N, this transaction increases profits and cash by 8000 each

In N, this transaction increases profits by 4000 and cash by 8000

In N, this transaction increases profits and cash by 4000