Lee, a married individual, is an employee with three rental properties in which Lee does not actively participate. In 2015, Property 1 had a net loss of $10,000, Property 2 had a net gain of $25,000, and Property 3 had a net loss of $5,000. Lee’s W–2 income in 2015 was $110,000. Considering only the foregoing facts, what is Lee’s 2015 adjusted gross income?

a. $120,000
b. $125,000
c. $110,000
d. $135,000