Tyler TTycoon Owns Various Office Buildings and Warehouses Throughout the City

Tyler T.Tycoon owns various office buildings and warehouses throughout the city of Dallas.He rents one building to Kate, Saperstein and Sons, a large department store.The lease is for four years and calls for a rental of $12,000 a year.Rent is payable in quarterly installments on March 31, June 30, September 30, and December 31.On May 1, Tyler transferred all the rights under the lease to his son, Tex.At that date, the lease had 44 months to run.This year Tex collected $9,000 of rents.He paid his father the $1,000 rent received for the month of April during which he was not the owner of the lease.For the year, Tyler will report rental income of

A) $1,000
B) $3,000
C) $4,000
D) $12,000
E) some other amount