Last year Mr. John Q. Public received an inheritance. He paid 20 \% in federal taxes on the inheritance, and paid 10 \% of what he had left in state taxes. He paid a total of \$ 10,500 for both taxes. How many dollars was the inheritance?
Answer Choices
A. 30,000
B. 32,500
C. 35,000
D. 37,500
E. 40,000