FORco, a foreign corporation, owns 100% of the shares of USAco, a U.S. corporation that derives all of its income from U.S. business operations. During its first year of operations, USAco has taxable income of $20 million and distributes all of its after-tax earnings to FORco. Assume no change in U.S. net equity during the year, a U.S. corporate tax rate of 21%, and a U.S. withholding rate for U.S.-source dividends is 5%. How much is the total U.S. tax burden on USAcos repatriated earnings?

Question 22 options:

1)	$4,200,000

2)	$5,200,000

3)	$4,990,000

4)

$0