For the following questions, provide an explanation of the correct answer and why the other choices are incorrect

On January 1, year 5, Olinto Corp., an accrual basis, calendar year C corporation, had $35,000 in accumulated earnings and profits. For year 5, Olinto had current earnings and profits of $15,000 and made two $40,000 cash distributions to its shareholders, one in April and one in September of year 5. What amount of the year 5 distributions are classified as dividend income to Olintos shareholders?

a. $15,000

b. $35,000

c. $50,000

d. $80,000