Eiffel Corporation is a 100-percent-owned French subsidiary of Tower Corporation, a U.S. corporation. During the current year, Eiffel paid a dividend of 500,000 to Tower. Assume an exchange rate of 1 = $1.50. Withholding taxes of 2,500 were imposed on the dividend. The dividend is paid out of earnings and profits that have not been subject to the deemed dividend rules under subpart F or GILTI. Compute the tax consequences to Tower as a result of this dividend.

a. Taxable income of $0 and a foreign tax credit of $2,500

b. Taxable income of $750,000 and a foreign tax credit of $0

c. Taxable income of $750,000 and a foreign tax credit of $4,375

d.Taxable income of $0 and a foreign tax credit of $0

Explain it step by step with related concepts please. Thank you