Discussion Question 13-22 (LO. 5) 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 S election 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