Choices:

an extension of the owners/separate from the owners

not taxed/taxed on annual earnings/taxed on cumulative earnings/taxed on distribution of earnings

allocated share of annual earnings/dividends received

conduit/entity/matching/substance over form

not taxed/taxed on annual earnings/taxed on cumulative earnings/taxed on distribution of earnings

allocated share of annual earnings/dividends recieved

upon receipt/whether or not distributed

Distributions of earnings by a C corporation are taxed at the shareholder level as dividend income. Earnings of an S corporation distributed to shareholders are not treated in a similar fashion. Complete the paragraph below that explains this difference. The C corporation is treated as The corporation is and the shareholders are taxed on the . The benefit of the Selection is that it uses the concept in reporting the results of operations. As a result, the S corporation is and the shareholders are taxed on the taxed