Assume That a Corporation Pays Taxes on Earnings at a Flat

Assume that a corporation pays taxes on earnings at a flat rate of 40%. If the firm earns $800,000 in operating profit and pays $50,000 in interest expense and $100,000 in dividends to
Its shareholders, what is its tax liability?

A) $260,000
B) $340,000
C) $315,000
D) $300,000