Artco Inc Is a C Corporation

Artco Inc. is a C corporation. This year it earned $50,000 of taxable income and paid a $10,000 distribution (dividend) to Lily, its sole shareholder. Lily has a marginal tax rate of 24%. Due to the corporation's results and the distribution paid, the IRS will receive total taxes of

A) $10,500.
B) $12,000.
C) $13,500.
D) $12,900.