As an inducement to enter a lease, Hashirama Inc., a lessor, grants Madara Corp., a lessee, nine months of free rent under a five-year operating lease. The lease is effective on July 1, 20x5, and provides for monthly rental of Php 1,000 to begin April 1, 20x6. In Art's income statement for the year ended June 30, 20x6, rent income should be reported as?