Lavender, Inc

Lavender, Inc., a qualifying § 501(c) (3) organization, incurs lobbying expenditures of $300,000 during the taxable year.Exempt purpose expenditures are $1,900,000.If Lavender makes the election under § 501(h) to make lobbying expenditures on a limited basis, its tax liability resulting from the lobbying expenditures is:

A) $13,750.
B) $61,250.
C) $75,000.
D) $91,875.
E) None of the above.