Under the old US tax regime, a firm earns $1 million before tax in Spain and pays Spanish tax of $400,000. The firm remits the remaining $600,000as a dividend to its U.S. parent. The U.S. tax rate is 35 percent. The parent will owe U.S. tax on this dividend of?

$350,000

$140,000

zero. It will also receive a foreign tax credit of $50,000.

$210,000