please help with Accounting...thank you

Long Beach, Inc., a lessor, charges Applewood Corp., a lessee, a $10,000 nonrefundable fee to enter into a four-year operating lease. The lease is effective on July 1, 2015. It requires an annual rental of $25,000, paid in monthly installments. In Applewood's income statement for the year ended June 30, 2016, rent expense should be Select one: a. $32, 500 b. $30,000 c. $27, 500 d. $40,000 e. $26, 400