LuxAir Incorporated (LA) has book income of $163,000. Included in this figure is income generated from ownership in JRC, of which LA owns 30 percent. JRC has $271,500 in earnings for the year and pays $32,225 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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