Foster Company's December 31, Year 1, Balance Sheet Showed $2,700

Foster Company's December 31, Year 1, balance sheet showed $2,700 cash, $1,000 common stock, and $1,700 retained earnings. The company experienced the following event during Year 2. On October 1, collected $12,000 in advance for an agreement to provide office space for one year beginning immediately. Based on this information alone,

A) the Year 3 income statement would show $9,000 of rent revenue.
B) the Year 3 balance sheet would show $9,000 of rent revenue.
C) the Year 2 income statement would show $3,000 of unearned rent revenue.
D) the Year 2 balance sheet would show $3,000 of unearned rent revenue.