Bentley Company leased equipment from Babson Company for a six-year term beginning July 1, Year 1. The rent for the first lease year is $8,000, and the rental charge for each of the remaining five years is $10,600. However, as an incentive to lease its equipment, Babson provided the first six months of the lease rent free. In its December 31, Year 1 income statement, What was Bentley's rental expense?
a. $9,500
b. $4,000
c. $8,000
d. $4,750