Company Z has $90,000 of taxable income from its operations, $5,000 of interest income, and $30,000 of dividend income from preferred stock it holds in other corporations. Its corporate tax rate is 25%. What is Company Zs tax liability? Assume a 50% dividend exclusion for taxes on dividends.

a. $27,500

b. $22,500

c. $31,250

d. $23,750

e. $30,000