For the scenario below, determine the amount of tax that the shareholder receiving the dividend income must pay on the dividend they receive. All entities below are C corporations. Assume all types of taxable income for a C corporation are taxed at a 21% tax rate.

Trinity Corporation owns 50 percent of Salient Corporation. In Year 1, Salient pays out a total of $2 million in cash dividends to all its shareholders, giving each owner a dividend in proportion to its ownership percentage.

	I.	0 of tax on the dividend
	II.	$73,500 of tax on the dividend
	III.	$105,000 of tax on the dividend
	IV.	None of the above