Private Inc

Private Inc.received a $5,000 eligible dividend from Public Inc., which is a non-connected corporation.Which of the following applies?

A) The dividends can be reinvested by Private Inc.on a tax-free basis.
B) The dividend will be subject to Part I tax.
C) The dividend will be subject to Part IV tax at rate of 38 1/3%.
D) Receipt of the dividend will result in an immediate dividend refund for Private Inc.