Given the following information, calculate the taxes due on sale for the following fully taxable sale. Net Sale Proceeds: $1,500,000, Adjustable Basis: $800,000, Depreciation Recapture: $120,000, Capital Gain Tax: 15%, Depreciation Recapture tax: 25%.

A. $87,000

B. $30,000

C. $580,000

D. $117,000

The use of mortgage debt to finance an income property investment has certain tax consequences. For example, up-front financing costs for investment properties are not fully deductible in the year in which they are paid. Instead, they must be amortized over the life of the loan. If up-front financing costs on a 30-year loan total $10,000, what is the maximum amount per year that the investor can deduct when calculating taxable income from rental operations? (Assume that there is no prepayment on the loan)

A. $100

B. $333

C. $3,000

D. $300