Clarence Corporation is owned by two (2) equal shareholders, James and John. Clarence Corporation has Taxable Income of $400,000 for the current tax year. James and John decide to separate Clarence Corporation into four (4) smaller corporations allocating Taxable Income for the current tax year of $100,000 to each of the four (4) smaller corporations. The four (4) separate corporations constitute a "Controlled Corporation" under the Federal Income Tax definition of Controlled Corporations. The combined tax liability for the four (4) separate corporations for the current tax year is:

		$ 84,000.
		$ 21,000.
		$ -0-.
		$136,000.