Corporate Dividends Are

Corporate dividends are:

A) tax-free because the income is taxed at the personal level when earned by the firm.
B) tax-free because they are distributions of aftertax income.
C) tax-free since the corporation pays tax on that income when it is earned.
D) taxed at both the corporate and the personal level when the dividends are paid to shareholders.
E) taxable income of the recipient even though that income was previously taxed.