Tram Limited entered into a non-cancellable lease on 1 January 2021 (commencement date) to lease office furniture (low value assets) for its employees from Office Limited. The financial reporting date of Tram Limited is 31 December. The following information is available relating to this lease transaction: The initial period of the lease is three (3) years. There is an option to extend the lease for a further two (2) years. At the commencement of the lease there is no reasonable certainty that Tram Limited will exercise this option. The lease payments are payable monthly in arrears with the first payment payable on 31 January 2021: Periods Total instalment per month Year 1 R5 000 Years 2 - 3 R3 000 Year 4 (extended) R2 000 Year 5 (extended) R1 500 The entity opts to apply the simplified approach for the lease as the leased items are considered to be low-value assets. The amount that is recognised in profit or loss as the lease expense for the year ended 31 December 2022 is: a. R3 000 b. R3 666 c. R44 000 d. R2 900 e. R36 000 f. R34 800