On December 31, 2014, Krug Company reported pretax income of $120,000 prior to the following adjusting entries: Depreciation expense: $31,000; Accrued service revenues: $29,000; Accrued expenses: $12,000; Used insurance: $9,000; the insurance was initially recorded as prepaid. Rent revenue earned: $7,000; the rent was initially prepaid by the tenant and credited to unearned rent revenue. How much is Krug's pretax income after adjusting entries? $104,000. $113,000. $128,000. $106,000.