Orange Cable TV Company,an Accrual Basis Taxpayer,allows Its Customers to Pay

Orange Cable TV Company,an accrual basis taxpayer,allows its customers to pay by the year in advance ($500 per year) ,or two years in advance ($950) .In September 2016,the company collected the following amounts applicable to future services:
October 2016-September 2018 services (two-year contracts)
$144,000
October 2016-September 2017 services (one-year contracts)
128,000
Total
$272,000
As a result of the above,Orange Cable should report as gross income:

A) $272,000 in 2016.
B) $128,000 in 2016.
C) $168,000 in 2017.
D) $222,000 in 2017.
E) None of these.