Bjorn Owns a 60% Interest in an S Corporation That

Multiple Choice

Bjorn owns a 60% interest in an S corporation that earned $150,000 in 2011. He also owns 60% of the stock in a C corporation that earned $150,000 during the year. The S corporation distributed $30,000 to Bjorn and the C corporation paid dividends of $30,000 to Bjorn. How much income must Bjorn report from these businesses?

A) $0 income from the S corporation and $30,000 income from the C corporation.
B) $90,000 income from the S corporation and $30,000 income from the C corporation.
C) $90,000 income from the S corporation and $0 income from the C corporation.
D) $30,000 income from the S corporation and $30,000 of dividend income from the C corporation.
E) None of the above.