On June 30, 2018, Sheridan Co. sold equipment to an unaffiliated company for $2250000. The equipment had a book value of $1205000 and a remaining useful life of 10 years. That same day, Sheridan leased back the equipment at $12500 per month for 5 years with no option to renew the lease or repurchase the equipment. Sheridans rent expense for this equipment for the year ended December 31, 2018, should be

A, B, C, or D

$125000.

$300000.

$100000.

$75000.