Wailes Corporation Is Subject to a Corporate Income Tax Only

Wailes Corporation is subject to a corporate income tax only in State X.The starting point in computing X taxable income is Federal taxable income.Wailes' Federal taxable income is $650,000,which includes a $60,000 deduction for state income taxes.During the year,Wailes received $50,000 interest on Federal obligations.X does not allow a deduction for state income tax payments.
Wailes' taxable income for X purposes is:

A) $600,000.
B) $650,000.
C) $660,000.
D) $710,000.