A father and son have been farming land owned by the father for the past 12 years. Just prior to his death, the father was offered $900,000 for his farm because of its possible use as a shopping center. The son would like to continue to farm the land if it can be included in his father's estate at its current use value. Additional facts are:
1. Average annual gross rentals from nearby farms of similar acreage are $36,000.
2. Average annual state and local real estate taxes on the farm are $4,000.
3. The interest rate for loans from the Federal Land Bank is 8 percent.
For federal estate tax purposes, the farm method valuation formula would result in a current use value for the farm of
A. $600,000
B. $300,000
C. $500,000
D. $400,000