Corporate dividends represent:

$1)\_\_\_\_\_\_$

A$)$ tax$-$free income for the recipient because they are distributions of pretax income.

B$)$ tax$-$free income for the recipient because they are distributions of aftertax income.

C$)$ pretax income from the corporation which becomes taxable income for the recipient.

D$)$ taxable income for both the corporation and the shareholder, whether or not dividends

are paid to shareholders.

E$)$ aftertax income from the corporation which becomes taxable income for the recipient