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A suburban office building in Fort Worth, Texas with 36,000 square feet was purchased for $4,500,000 at an 8% cap rate. Debt service for the first year was $305,000 of which $236,000 was interest and $69,000 was principal. Annual depreciation for tax purposes was $148,000. What was the property’s first year taxable income?

a. $124,000

b. $212,000

c. - $24,000

d. $55,000

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