Long Beach, Inc., a lessor, charges Applewood Corp., a lessee, a $15,000 nonrefundable fee to enter into a 12-month lease. The lease is effective on 9/1/22. It provides for monthly rental of $2,800. In Applewood's income statement for the year ended 12/31/22, rent expense should be

Select one:

a.

$21,200

b.

$14,950

c.

$16,200

d.

$26,200

e.

$11,200