Lead Ltd. leased an office building to Hammer Inc. for a three year, non-renewable term. This was properly classified as an operating lease by both parties. The monthly rental is set at $ 12,000 per month. However, as an added inducement, Lead agreed to grant Hammer a four-month rent-free period at the beginning of the lease, and a further two-month rent-free period at the end of the lease. How much rent expense should Hammer record each month during the three year period? Select one: a. $ 10,000 b. $ 11,250 c. $10,667 d. $ 12,000