On June 30, 2015, Falk Co. sold equipment to an unaffiliated company for $1,000,000. The equipment had a book value of $900,000 and a remaining useful life of 10 years. That same day, Falk leased back the equipment at $10,000 per month for 5 years with no option to renew the lease or repurchase the equipment. Falk's rent expense for this equipment for the year ended December 31, 2015, should be

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Falk Co. leased back the equipment for 5 years at $10,000 per month. For the year ended December 31, 2015, the rent expense would be for 6 months (July to December), which is $10,000 x 6 = $60,000.