On September 1, 2016, Custom Shirts Inc. entered into a lease agreement appropriately classified as an operating lease. The lease term is three years. The annual payments are (a) $21,000 for year 1, (b) $25,000 for year 2, and (c) $29,000 for year 3. How much rent expense will Custom Shirts recognize for 2016? (Round your answer to the nearest dollar. Do not round your intermediate calculations.)

A. $21,000

B. $7,000

C. $8,333

D. $25,000