Mena Corp. entered into a five-year lease agreement with Ott Corp. Mena, the lessee, paid an additional

$5,000 nonrefundable lease bonus to Fall upon signing the

operating lease agreement. When would Ott recognize in

income the nonrefundable lease bonus paid by Mena?

a. When received.

b. Over the life of the lease.

c. At the expiration of the lease.

d. At the inception of the lease.