Denver Corporation Owns 25 Percent of the Voting Shares of Alamos

Denver Corporation owns 25 percent of the voting shares of Alamos Corporation.In 2008,Alamos reported net income of $120,000 and paid dividends of $30,000.Denver uses the equity method to account for this investment.Denver reported taxable income of $160,000 on its separate operations and has an effective tax rate of 40 percent.There is an 80 percent exemption on intercompany dividends.
-Based on the preceding information,income taxes payable for Denver for the year 2008 will be:

A) $67,000
B) $64,600
C) $64,000
D) $76,000