oscar is the 100% owner of zyx inc a c corp. which of the following correctly describes the tax consequences if oscar chooses to pay himself dividends from corporate profits.

1. The total profit earned by the corp is taxable to oscar in the year it is earned, regardless of which year he chooses to withdraw the funds

2. oscar will pay tax on his individual inome tax return at a rate of 21% on any dividends he withdraws

3. the corporation will issue oscar a form 1099-div reporting the dividends paid and then deduct the amount from their total profit in the year the distribution is claimed.

4. oscar will pay tax on the dividends at his normal individual rate in the year they are withdrawn.