Luis is the sole shareholder of a C corporation and Eduardo owns a proprietorship. In the current year, both business earn $80,000 profit and each owner withdraws $50,000 from his business. Which of the following is incorrect?

a. Luis must report $80,000of income on his return.

b.Eduardo must report $80,000 of income on his return.

c.Luiss corporation must pay income tax on $80,000.

d.Eduardos proprietorship is not required to pay income tax on $80,000.

e.None of the above.