John presently owns an office building, which is 30 years old, and is considering renovating it. Assume that if John does the renovation, he will be able to obtain a new loan that is equal to the balance of the existing loan plus 75% of the renovation costs. Assume a five-year holding period. Below is the information about the property and Johns estimation if he does the renovation.

What is the capital gain tax from the property sale by the end of year 8 if John does renovate the property? (Choose the nearest value

a. $81,955

b. $60,308

c. $43,077

d. $45,949