B. S shareholders are only taxed on distributions. A. An owner of a C corporation is taxed on his or her proportionate share of earnings. Which of

B. S shareholders are only taxed on distributions. A. An owner of a C corporation is taxed on his or her proportionate share of earnings. Which of the following statements is correct? A. An owner of a C corporation is taxed on his or her proportionate share of earnings. B. S shareholders are only taxed on distributions. C. S shareholders are taxed on their proportionate share of earnings that are distributed. D. S shareholders are taxed on their proportionate share of earnings whether or not distributed.