River Co. owns 80% of Boat Inc. The two companies file a consolidated income tax return and River uses the initial value method to account for the investment. The following information is available from the two companies' financial statements:

	River Co.	Boat Inc.
Separate operating income (excludes equity or dividend income from subsidiary)	$600,000	$120,000
Net intra-entity gains on assets remaining in the consolidated entity in current year income (included in separate operating income above)	50,000	15,000
Dividends received from Boat Inc. (not included in separate operating income above)	24,000	–0–
Dividends paid	110,000	30,000

The amount of income tax expense that should be assigned to Boat using the separate return methodis approximately:

$31,500

$32,660

$32,750

$33,390

$36,000