On January 1, 2011, Wren Co. leased a building to Brill under an operating lease for ten years at $50,000 per year, payable the first day of each lease year. Wren paid $15,000 to a real estate broker as a finder’s fee. The building is depreciated

$12,000 per year. For 2011, Wren incurred insurance and property tax expense totaling $9,000. Wren’s net rental income for 2011 should be

a. $27,500

b. $29,000

c. $35,000

d. $36,500