Your corporation has the following cash flows:

Your corporation has the following cash flows: 

Operating income$250,000Interest received$10,000Interest paid$45,000Dividends received$16,000Dividends paid$50,000

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If the applicable income tax rate is 40% (federal and state combined), and if 70% of dividends received are exempt from taxes, what is the corporation’s tax liability?

a.$81,766b.$87,920c.$70,336d.$88,799e.$92,316