Cobra Corporation Is Subject to a Corporate Income Tax Only

Cobra Corporation is subject to a corporate income tax only in State X.The starting point in computing X taxable income is Federal taxable income.Cobra's Federal taxable income is $250,000, which includes a $55,000 deduction for state income taxes.During the year, Cobra received $150,000 interest on Federal obligations and $45,000 of interest on State Z obligations.X does not allow a deduction for state income tax payments, but it does exclude interest earned on its own obligations. Cobra's taxable income for X purposes is:

A) $195,000.
B) $200,000.
C) $205,000.
D) $250,000.
E) $445,000.