I need help with the following question relating to the current 2021 tax year.

Jamie and Claire Smith have a marginal tax rate of 10% and $2,000 of dividend income. How much tax will be saved by the Smith family by transferring the stock generating the dividends to their 3-year-old daughter at the beginning of the year. The daughter has no other income.

Group of answer choices

$200

$100

None of the other answers are correct.

$110