Bjorn Owns a 35% Interest in an S Corporation That

Multiple Choice

Bjorn owns a 35% interest in an S corporation that earned $200,000 in 2010.He also owns 10% of the stock in a C corporation that earned $200,000 during the year.The S corporation distributed $10,000 to Bjorn and the C corporation paid dividends of $10,000 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) $10,000 income from the S corporation and $10,000 income from the C corporation.
C) $70,000 income from the S corporation and $0 income from the C corporation.
D) $70,000 income from the S corporation and $10,000 of dividend income from the C corporation.
E) None of the above.