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The 120k went into the label, he pumped another million into her directly just for the first album.
btw I tried to find a trustfull source for the claim that it was only 120k. There are different numbers thrown around, while the 120k is the lowest. The source of that number is Wikipedia and the 2 linked "resources" for that don't mention it. One of the 2 resources is even an article that is not about Tailor Swift but rather one about some Tobey Keith instead.
I don't think it was disclosed. I couldn't find any proof about the amount.
She was 14 when "signing" the record label contract.
This is basically the moment where they used that load of money.And everyone who is thinking that she is a self-made anything is blind by choice.
Parents throwing Kids at that age into international careers make me at least sceptical about their motivation. That it seems to have worked out this time, doesn't change that at all.