On October 1, Bender Company (a calendar-year, cash-basis taxpayer) signs a lease with Realco Corporation to rent office space for 36 months. Bender obtains favorable monthly payments of $600 by agreeing to prepay the rent for the entire 36-month period. If Bender Company pays the entire $21,600 on October 1, how much can it deduct in the current year? Assume the same facts except the lease requires that Bender Company make three annual payments of $7,200 each on October 1 of each year for the next 12 months rent. Bender Company pays $7,200 for the first 12-month rental period on October 1 of the current year. How much can Bender Company deduct in the current year?