The subsidiary of a U.S. corporation located in Country Y generated income of $1,000,000 on which it paid $200,000 in taxes to Country Y. The subsidiary paid a dividend to the U.S. parent of $150,000. How much tax is currently owed to the U.S. government if the federal tax rate is 35%?

A. $35,625

B. $28,125

C. $52,500

D. $32,500

The answer is B. I just don't know how to compute it.