Which of the Following Statements Regarding Common Stock Dividends Is

Which of the following statements regarding common stock dividends is true?

A) They provide a tax deduction for the corporation paying them, and they are not included in the taxable income of the recipients.
B) They are paid out of the after-tax income of the corporation paying them, and the recipients also pay taxes on this income.
C) They are paid out of the after-tax income of the corporation paying them, so the recipients do not have to pay taxes on the income.
D) They provide a tax deduction for the corporation paying them, but the recipients of the income must pay taxes on the income.