Griffey Communications recently realized $105,000 in operating income. The company had interest income of $35,000 and realized $70,000 in dividend income. The companys interest expense was $55,000. 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

a. $30,000

b. $38,750

c. $52,500

d. $43,750

e. $21,250