Suppose a Firm Earns $Million Before-Tax in Spain

Suppose a firm earns $million before-tax in Spain. It pays Spanish tax of $million and remits the remaining $million as a dividend to its U.S. parent. The Spanish dividend withholding tax is 5%. Under current U.S. tax law, the parent will owe U.S. tax on this dividend equal to

A) $1.15 million
B) $552,000
C) nothing. It will also receive a foreign tax credit equal to $1.3 million.
D) nothing. It will also receive a foreign tax credit equal to $510,000.