Leer Corp.'s pretax income in Year 1 was $100,000. The temporary differences between amounts reported in the financial statements and the tax return are as follows:

Depreciation in the financial statements was $8,000 more than tax depreciation.

The equity method of accounting resulted in financial statement income of $35,000 from the investee.

A $25,000 dividend was received during the year from the investee, which is eligible for the 65% dividends received deduction.

Leer's effective income tax rate was 30% in Year 1. In its Year 1 income statement, Leer should report a current income tax expense of

A.

$19,725

B.

$22,125

C.

$24,525

D.

$25,725