A distinguishing feature of a C corporation is which of the following?

a) It passes through income to its shareholders and does not pay tax directly.

b) It pays tax on its income after deducting expenses, even if that income is used to pay wages or dividends.

c) It pays tax on its income after deducting expenses, except income paid to shareholders as dividends.

d) It pays tax on its income after deducting expenses, except income paid to shareholders as wages or salary.