Net Operating Income: $14,000 Depreciation: $4,000 Debt Service: $13,000 (interest is $12,000 of this amount) Vacancy and Credit Loss: $7,000 Interest Expense: $12,000 Operating Expenses: $3,000 Tax rate: 28%

Assuming that the investor can use any tax shelter benefits, what are the taxes due or the taxes saved ($$$) for these annual figures? ($1,440), $560 , ($560), $1,440?

Assuming that the investor can use any tax shelter benefits, what is the cash flow after taxes? ($2,000), $1,000, ($1,440), $1,560