On December 1, 2006, Clark Co. leased office space for five years at a monthly rental of $60,000. On the same date, Clark paid the lessor the following amounts:

First month's rent.................................................................$ 60,000

Last month's rent....................................................................60,000

Security deposit (refundable at lease expiration)...............80,000

Installation of new walls and offices...................................360,000

What should be Clark's 2006 expense relating to utilization of the office space?

1. $ 60,000

2. $ 66,000

3. $120,000

4. $140,000