REFERENCE: Ref.07_09 White Company Owns 60% of Cody Company.Separate Tax Returns Are

REFERENCE: Ref.07_09
White Company owns 60% of Cody Company.Separate tax returns are required.For 2009,White's operating income (excluding taxes and any income from Cody) was $300,000 while Cody reported a pretax income of $125,000.During the period,Cody paid a total of $25,000 in cash dividends,$15,000 (60%) to White with the remaining going to noncontrolling interest.The income tax rate for both companies is 30%.
-Compute Cody's income tax expense for 2009.

A) $33,000.
B) $34,500.
C) $37,500.
D) $30,000.
E) $22,500.