Bjorn owns a 40% interest in an S corporation that earned $150,000 in 2008. He also owns 30% of the stock in a C corporation that earned $150,000 during the year. The S corporation distributed $35,000 to Bjorn and the C corporation paid dividends of $35,000 to Bjorn. How much income must Bjorn report from these businesses?

a. $0 income from the S corporation and $0 income from the C corporation.

b. $35,000 income from the S corporation and $35,000 income from the C corporation.

c. $60,000 income from the S corporation and $35,000 of dividend income from the C corporation.

d. $60,000 income from the S corporation and $0 income from the C corporation.

e. None of the above.