On June 1, Oren Co. entered into a 5-year nonrenewable lease, commencing on that date, for office space and made the following payments to Rose Properties:

Bonus to obtain lease	$30,000
First months rent	10,000
Last months rent	10,000

In its income statement for the year ended June 30, what amount should Oren report as rent expense?

A.

$10,000

B.

$40,000

C.

$10,500

D.

$50,000