Luke owns 10% of the stock in Mootan Company. During the current year, Mootan has taxable income of $400,000 and distributes $20,000 in total to its Which of the following statements is true?

Group of answer choices

Both of these are true

If Mootan is a C corporation, Luke has $2,000 of taxable dividend income from Mootan.

None of these are true.

If Mootan is a partnership, Luke has $40,000 of taxable income from Mootan