b) In your own words, explain what is meant by the phrase, C corporation income is subject to

double taxation. Specifically, when is the first tax paid and by what entity? What event(s)

typically trigger the second level of tax to be paid and by what entity? In your own words, explain

what is meant by the phrase, flow-through entity income is taxed once. Specifically, when is the

tax paid and by what entity? One of your neighbors said he personally does not need to worry

about paying taxes on the business income generated by his flow-through entity this year because

he has never received any distributions (cash or otherwise) from the entity. Explain why you

agree or do not agree with this perspective.