P Corporation is a publicly held corporation which owns 10% of S Corporation's stock. S Corporation has taxable income of $100,000 and distributes a $50,000 dividend to P. P has taxable income of $1,000,000 before the dividend.

a. P's corporate income tax is $345,100 on $1,015,000 of taxable income. S Corporation tax is $22,250.

b. P's corporate income tax is $345,100 and S's corporate income tax is $34,000.

c. P Corporation owes AMT.

d. None of the above.