Reyes Corp

Reyes Corp. generated $1 million of income from domestic operations and an additional $300,000 from its only foreign subsidiary. Its tax rate is 35 percent on domestic income and 30 percent on foreign income. If Reyes' home country observes the capital export neutrality approach to taxation, what net dividend will Reyes receive from its subsidiary?

A) $105,000
B) $135,000
C) $155,000
D) $175,000
E) $195,000