Which of the Following Statements Best Describes the Purpose of the Dividend

Which of the following statements best describes the purpose of the dividend refund?

A) The dividend refund allows corporations with a balance in their RDTOH accounts to reduce their tax payable by paying dividends.
B) The dividend refund allows corporations with a balance in their capital dividend account to reduce their tax payable by paying dividends.
C) The dividend refund reduces the effective tax rate on dividend income earned by corporations.
D) The dividend refund reduces the effective tax rate on dividend income earned by shareholders.