LuxAir Incorporated (LA)has book income of $166,000. Included in this figure is income generated from ownership in JRC, of which LA owns 30 percent. JRC has $273,000 in earnings for the year and pays $32,450 in dividends to LA. Assuming accounting for the investment in JRC (income from JRC and the DRD)are its only book-tax differences, what is LA's tax liability for the year?
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