P is a publicly held corporation with a subsidiary S. P has taxable income of $1,000,000 and S has taxable income of $100,000. S distributed a dividend of $50,000 from its taxable of $100,000 so that P has potential additional taxable income of $50,000 and add that P has not owned S always.

a.Ps taxable income increases by $10,000 because of the 80% DRD.

b.P has no additional AMT exposure because 80% DRDs are not an AMT ACE adjustment.

c.Ps corporate income tax is $343,400.

d. All of the above.

which is the best answer?