Company

Z

has

$105,000

of taxable income from its operations,

$7,000

of interest income, and

$24,000

of dividend income from preferred stock it holds in other corporations. Its corporate tax

r

is

25%

. What is Company Z's tax liability? Assume a

50%

dividend exclusion for taxes on dividends.\ a.

$26,250

\ b.

$31,000

\ c.

$34,000

\ d.

$32,250

\ e.

$28,000

Company Z has $105,000 of taxable income from its operations, $7,000 of interest income, and $24,000 of dividend income from preferred stock it holds in other corporations. Its corporate tax r is 25%. What is Company Z's tax liability? Assume a 50% dividend exclusion for taxes on dividends. O a. $26,250 O b. $31,000 Oc. $34,000 O d. $32,250 Oe. $28,000