Orange cable tv company, an accrual basis taxpayer, allows its customers to pay by the year in advance ($600 per year), or two years in advance ($960). in september 2018, the company collected the following amounts applicable to future services:

october 2018-september 2020 services (200 two-year contracts) $192,000

october 2018-september 2019 services (200 one-year contracts) 120,000

total $312,000

as a result of the above, orange cable should report as gross income for 2019:

a) $54,000
b) $78,000
c) $258,000
d) $312.000