YesCo Acquired NoCo on January 1 of This Year for $1

YesCo acquired NoCo on January 1 of this year for $1 million when the Federal long-term tax-exempt rate was 3%. Two of the tax attributes that YesCo found appealing are NoCo's NOL of $500,000 and its negative E & P of $300,000. Before applying any of NoCo's tax benefits, YesCo has taxable income of $35,000 and E & P of $350,000. YesCo pays a dividend of $100,000 to its shareholders. How much of this dividend is taxable?

A) $5,000 is taxable.
B) $50,000 is taxable.
C) $55,000 is taxable.
D) $100,000 is taxable.
E) None of the above.