Your Corporation Has the Following Cash Flows If the Applicable Income Tax Rate Is 40% (Federal and income

Your corporation has the following cash flows: $\begin{array}{ll}\text { Operating income } & \$ 250,000 \\\text { Interest received } & \$ 10,000 \\\text { Interest paid } & \$ 45,000 \\\text { Dividends received } & \$ 20,000 \\\text { Dividends paid } & \$ 50,000\end{array}$ If the applicable income tax rate is 40% (federal and state combined) , and if 70% of dividends received are exempt from taxes, what is the corporation's tax liability?

A) $ 83,980
B) $ 88,400
C) $ 92,820
D) $ 97,461
E) $102,334