On November 1, 2017, Hernandez Corporation (A Cash-Basis, Calendar-Year Taxpayer)

On November 1, 2017, Hernandez Corporation (a cash-basis, calendar-year taxpayer) signed a 36-month lease with Taylor Realty Corporation for rental office space. The market rental rate for this office space is $2,000 per month but Hernandez was able to rent it for $1,900 per month by agreeing to prepay the rent for the entire 36-month period. How much can Hernandez deduct in 2017 rent expense?

A) $68,400
B) $22,800
C) $4,000
D) $3,800