A partnership earns $50,000 net income in its first year of business. How much of this net income is taxable to the partners?

A. Each partner can decide how much to withdraw, which is then taxable. The amount remaining in the partnership accounts is not taxed until withdrawn.

B. All of it, no matter how much is distributed to the partners.

C. Only the portion that is distributed to the partners.

D. None of it, as a partnership is the taxable entity.