A 39,000 square foot, single tenant fully leased office building in Topeka, Kansas was purchased for $7,800,000. The tenant had a 10-year lease at a flat rental rate of $2.00 per square foot per month with an operating expense stop of $0.70 per square foot per month. The building's first-year annual operating expenses totaled $360,000. The property was acquired with a $5,000,000 purchase money mortgage loan from Bank of America at a 4.75% annual interest rate that was fully amortized over 30 years and was payable monthly. The building/land ratio for tax depreciation purposes was 80%.

What was the net operating income to the landlord for the first year?

(A) $936,000

(B) $608,400

(C) $576,000

(D) $295,412