Griffey Communications recently realized $125,000 in operating income. The company had interest income of $25,000 and realized $
70,000 in dividend income. The company's interest expense was $40,000. Tax on Base Percentage on Taxable Income of Bracket Excess above Base Up to $50,000 $ 0 15% $50,000$75,000 7,500 25 $75,000$100,000 13,750 34 $100,000$335,000 22,250 39 $335,000$10,000,000 113,900 34 $10,000,000$15,000,000 3,400,000 35 $15,000,000$18,333,333 5,150,000 38 Over $18,333,333 6,416,667 35 Using the corporate tax schedule above, what is Griffey's tax liability? a. $34,340 b. $36,057 c. $32,623 d. $30,992 e. $29,442
