Required information On January 1, 20X8, Putter Corporation acquired 40 percent of the voting shares of Shank Company for $65,000. Shank reported net income of $45,000 and paid dividends of $10,000 in 20X8. Putter reported operating income of $50,000 for the year. There is 80 percent exemption of intercompany dividends and the effective tax rate is 35 percent. Assume that the equity method is being used. Based on the preceding information, what would Putter report as income tax expense for the year? Multiple Choice $23,800 $17,500 $18,760 $22,540