answer is A but i need help with knowing how to get to that answer

Assume an investor acquires an apartment property for $750,000 (including all acquisition costs) in June. The value allocated to the land is 25 percent of the property's value. The expected net operating income on the property in years 1 and 2 is $67,500 and $70,000; and the interest expenses are expected to be $50,000 and $52,000, respectively. The financing costs required to acquire a 20-year mortgage are $4,000. Determine the taxable income on the property in year 2, assuming the maximum allowable are applied. A. $2,622 B. $3,377 C. $6,720 D. $9,988