At the End of 2008,Newt,an S Corporation,has Gross Receipts of $190,000

At the end of 2008,Newt,an S corporation,has gross receipts of $190,000 and gross income of $170,000.Newt has AEP of $22,000 and taxable income of $30,000.There is passive investment income of $100,000,with $40,000 of expenses directly related to the production of passive investment income.Newt's PII (§ 1375) penalty tax is:

A) $0.
B) $10,500.
C) $11,025.
D) $31,500.
E) None of the above.