On April 1, year 1, Hall Fitness Center leased its gym to Dunn Fitness Center under a four-year operating lease. Hall normally charges $6,000 per month to lease its gym, but as an incentive, Hall gave Dunn half off the first year's rent, and one quarter off the second year's rent. Dunn's rental payments were as follows: Year 1 12 x $3,000 = $36,000 Year 2 Year 3 Year 4 12 x $4,500 = $54,000 12 x $6,000 = $72,000 12 x $6,000 = $72,000 Dunn's rent payments were due on the first day of the month, beginning on April 1, year 1. What amount should Dunn report as rent expense in its monthly income statement for April, year 3? O $3,000 $4,500 $4,875 O $6,000