Please explain why the answer is d

Suppose a firm earns $2.5 million beforetax in Spain. It pays Spanish tax of $1.3 million and remits the remaining $1.2 million as a dividend to its U.S. parent. The Spanish dividend withholding tax is 5%. Under current U.S. tax law, the parent will owe U.S. tax on this dividend equal to

a) $1.15 million

b) $552,000

c) nothing. It will also receive a foreign tax credit equal to $1.3 million.

d) nothing. It will also receive a foreign tax credit equal to $510,000.

Ans: d