Corporations X,Y,and Z are component members of a controlled group of corporations on December 31 of the current year. For the current year, they allocate taxable income brackets under an apportionment plan as follows:
Corporation X 1/4 of each tax bracket
Corporation Y 1/2 of each tax bracket
Corporation Z 1/4 of each tax bracket
Corporation Y has taxable income of $80,000 for the current year. What is corporation Y's income tax liability if the controlled group's total taxable income is $97,000?
a. $12,000
b. $15,400
c. $18,680
d. $21,325