Kansas Corporation is a 68% shareholder in Colorado, Inc. Last year, Colorado paid Kansas $100,000 as compensation for unspecified services provided by Kansas employees to Colorado, and deducted the payment on its federal income tax return. The revenue agent who audited both corporations' returns concluded that the payment is a constructive dividend. Both corporations have a 21% marginal tax rate. What is the effect of this audit conclusion on each corporation's income tax liability?

a. Kansas $13,650 decrease; Colorado $21,000 increase

b. Kansas $21,000 decrease; Colorado $21,000 increase

c. Kansas $21,000 increase; Colorado -0- effect

d. Kansas -0- effect; Colorado $21,000 decrease