1. On January 1, year 5, Olinto Corp., an accrual basis, calendar year C corporation, had $35,000 in accumulated earnings and profits. For year 5, Olinto had current earnings and profits of $15,000 and made two $40,000 cash distributions to its shareholders one in April and one in September of year 5. What amount of the year 5 distributions is classified as dividend income to Olinto's shareholders? a. $15,000 b. $35,000 c. $50,000 d. $80,000