Paul Bristol, a cash-basis taxpayer, owns an apartment building.

The following information was available for 2010:

An analysis of the 2010 bank deposit slips showed recurring monthly rents received totaling $50,000.

On March 1, 2010, the tenant in apartment 2B paid Bristol

$2,000 to cancel the lease expiring on December 31, 2010.

The lease of the tenant in apartment 3A expired on December 31, 2010, and the tenant left improvements valued at $1,000. The improvements were not in lieu of any rent required to have been paid.

In computing net income from that apartment building for 2010, Bristol should report gross income of

a. $50,000

b. $51,000

c. $52,000

d. $53,000