Griffey Communications recently realized $122,500 in operating income. The company had interest income of $20,000 and realized $70,000 in dividend income. The companys interest expense was $30,000. 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.

a. $36,875

b. $44,375

c. $53,125

d. $45,625

e. $28,125