. Red Corporation and Blue Corporation, both calendar year C corporations, are members of a controlled group of corporations. For 2013, Red has taxable income of $120,000 and Blue had taxable income of $145,000. Assume that the controlled group does not make an election regarding the apportionment of the marginal tax brackets, what is the income tax liability for each of the corporations?

A. Red Corporation $48,175, Blue Corporation $38,425

B. Red Corporation $52,075; Blue Corporation $61,825

C. Red Corporation $38,425; Blue Corporation $48,175

D. Red Corporation $61,825; Blue Corporation $52,075

E. None of the Above.