Kanaaq began a group of compantes in Year 1 which are referred to as the 'KQ Group. The companles only earn active business Income. The parent company of the group is KQ Co. which had $300,000 of taxable Income In Year 2. KQ Co.'s wholly owned subsidlaries are Kan Co. which has taxable income of $50,000 for Year 2, and Aaq Co. which has a loss of $20,000 for Year 2 and unused losses from Year 1 of $15,000. KQ Co. and Kan Co. have no loss carryovers. The corporate tax rate Is 13%. What Is the total tax llability for the KQ Group in Year 23

Multiple Choice

$39.000

$40,950

$42,900

$45,500