Question: Griffey Communications recently realized $ 1 1 2 , 5 0 0 in operating income. The company had interest income of $ 3 0 ,

Griffey Communications recently realized $112,500 in operating income. The company had interest income of $30,000 and realized $70,000 in dividend income. The companys interest expense was $40,000. Its corporate tax rate is 25%. Griffey is a small company, so it is not subject to the interest expense deduction limitation.
Assume a 50% dividend exclusion for taxes on dividends.
Which of the following most closely matches the tax liability of Griffey Communications?

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