Which of the following describes the difference between S corporation taxation and C corporation taxation?

A. There is no difference.

B. The shareholders of an S corporation are taxed on the entity level earnings whereas the shareholders of a C corporation are not taxed on the entity level earnings.

C. The shareholders of an C corporation are taxed on the entity level earnings whereas the shareholders of a S corporation are not taxed on the entity level earnings.

D. None of the alternatives are correct.