I want Detailed Explaination

1. During the previous year, PCM Inc., a C corporation, purchased 16 percent common stock of BDC Inc., another C corporation from its only shareholder. Both PCM and BDC operated in the same industry. During the current year, BDC Inc., distributed $1,000,000 dividends. Assume that PCMs marginal tax rate is 21%.

What amount of tax will PCM pay on the dividends received from BDC?

1. $210,000
2. $16,800
3. $33,600
4. $160,000