A company has a financial year end of 31 December 2019. At 31 December 2018, the company had a prepayment for rates expenditure of $1,000. On 1 April 2019, the company paid rates of $4,500 for the 12 months to 31 March 2020.

What expense should the company recognize in respect of rates in its profit or loss account for its financial year to 31 December 2019?