M Corporation's Federal Taxable Income for the Current Year Is

M Corporation's federal taxable income for the current year is $100,000.Such amount includes $10,000 of interest on U.S.government obligations and excludes $6,000 of interest on state and local obligations.M deducted $3,000 of state income taxes in arriving at federal taxable income.M is taxable only in State A.State A allows a deduction for interest incurred on federal obligations, taxes all municipal bond interest, and disallows a deduction for state income taxes.What is M's state taxable income?

A) $100,000
B) $99,000
C) $109,000
D) $101,000
E) Some other amount