X Limited is a Canadian public corporation with permanent establishments in Ontario, Canada and Las Vegas, Nevada, USA. For the current year, X Limited has correctly determined that 25% of its taxable income is attributable to the permanent establishment in the United States. X Limited has also correctly computed its taxable income for the current year, to be $500,000. What is X Limiteds Canadian federal income tax payable for the current year? Ignore provincial corporate income taxes.

Select one:

A. $ 87,500

B. $ 125,000

C. $ 152,500

D. $ 190,000