In July 1997, Dan Farley Leased a Building to Robert

In July 1997, Dan Farley leased a building to Robert Shelter for a period of 15 years at a monthly rental of $1,000 with no option to renew. At that time the building had a remaining estimated useful life of 20 years. Prior to taking possession of the building, Shelter made improvements at a cost of $18,000. ftese improvements had an estimated useful life of 20 years at the commencement of the lease period. fte lease expired on June 30, 2012, at which point the improvements had a fair market value of $2,000. fte amount that Farley, the landlord, should include in his gross income for 2012 is:

A) $6,000
B) $8,000
C) $12,000
D) $24,000