Response to the following problem:
The PARENT Corporation received $3 million in dividends from the SUB Corporation. PARENT'S income is taxed at a flat rate of 40%. How much tax must PARENT Corporation pay on these dividends if the relationship between the two companies for purposes of the dividends-received deduction is:
a. SUB and PARENT have no affiliation.
b. SUB is 10%-owned by PARENT.
c. SUB is wholly owned by PARENT.