Bjorn Owns a 40% Interest in an S Corporation That

Multiple Choice

Bjorn owns a 40% interest in an S corporation that earned $150,000 in 2008.He also owns 30% of the stock in a C corporation that earned $150,000 during the year.The S corporation distributed $35,000 to Bjorn and the C corporation paid dividends of $35,000 to Bjorn.How much income must Bjorn report from these businesses?

A) $0 income from the S corporation and $0 income from the C corporation.
B) $35,000 income from the S corporation and $35,000 income from the C corporation.
C) $60,000 income from the S corporation and $35,000 of dividend income from the C corporation.
D) $60,000 income from the S corporation and $0 income from the C corporation.
E) None of the above.