A property is being appraised using the income capitalization approach. Annually, it has potential gross income of $$40,000,$ vacancy and credit losses of $$3,500,$ and operating expenses of $$16,000.$ Using a capitalization rate of $8\%,$ what is the indicated value $($to the nearest $$1,000)?$

A$.$

$$300,000$

B$.$

$$256,000$

C$.$

$$456,000$

D$.$

$$500,000$