Lintner Beverage Corp Calculate Lintner's Total Tax Liability Using the Corporate Tax Schedule

Lintner Beverage Corp.reported the following information from their financial statements: $$\begin{array} { l r } \text { Operating income (EBIT) } = & \$ 10,500,000 \\\text { Interest payments on long-term debt } = & \$ 1,750,000 \\\text { Dividend income } = & \$ 1,000,000\end{array}$$
Calculate Lintner's total tax liability using the corporate tax schedule below: $\begin{array}{lrr}\text { Taxable Income } & \text { Tax on Base of Bracket } & \text { Percentage on Excess above Base } \\\$ 0-\$ 50,000 & \$ 0 & 15 \% \\\$ 50,000-\$ 75,000 & 7,500 & 25\\\$ 75,000-\$ 100,000 & 13,750 & 34 \\\$ 100,000-\$ 335,000 & 22,250 & 39 \\\$ 335,000-\$ 10,000,000 & 113,900 & 34\\\$ 10,000,000-\$ 15,000,000 & 3,400,000 & 35 \\\$ 15,000,000-\$ 18,333,333 & 5,150,000 & 38 \\\text { Over } \$ 18,333,333 & 6,416,667 & 35\end{array}$
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Assume a 70% dividend exclusion for tax on dividends.

A) $2,892,380
B) $3,692,400
C) $3,292,390
D) $2,738,530
E) $3,077,000