How did they calculate the highlighted $218,153?

You own a 35,000 SF office building that is 80% rented at $20.00/SF, with expense pass through to you of $5.00/SF. You pay a manager 3% of rental income at the property. You bought the building at the beginning of this year for $4,000,000 at 75% LTV. You are a 10% partner. Bank terms included a 4% rate and a 20-year amortization. Assume your personal tax rate is 24%. Long term capital gains will always be 20%. You can depreciate your total purchase price. Calculate your tax cash flow and taxable cash flow for year 1. TAX $ 80%*35,000*$20 $5*35,000 3% income Income Expenses Management Fee Net Operating Income Year 1 Cash Flow Analysis CASH $ 560,000 $ 175,000 $ 16,800 $ 368,200 Income Expenses Management Fee Net Operating Income nnnn 000 175,000 16,800 368,200 $ USE TVM for PMT, Debt Service ($3MM Ioan, then x 12 4%, 20-year amort) $ 218,153 Interest Paid $ Depreciation (Price / 39) $ N=12, CPT FV. Get interest 118, 180 paid in year 1. 102,564 Before Tax Cash Flow $ 150,047 Taxable income $ 147,456 Taxes $ 35,389 Taxes (Income *24%) $ 35,389 After Tax Cash Flow $ 114,658 You use the tax scenario to determine the taxes you will pay on your income after debt service