Flycatcher Corporation, a C corporation, has two equal individual shareholders, Nancy and Pasqual. In the current year, Flycatcher earned $200,000 net profit and paid a dividend of $40,000 to each shareholder. Regardless of any tax consequences resulting from their interests in Flycatcher, Nancy is in the 28% marginal tax bracket and Pasqual is in the 35% marginal tax bracket. With respect to the current year, which of the following statements is incorrect?

a. Flycatcher pays corporate tax on $200,000

b. Nancy incurs income tax of $6,000 on her dividend income.

c. Pasqual incurs income tax of $6,000 on his dividend income.

d. Flycatcher can avoid the corporate tax altogether by paying out all $200,000 of net profit as dividends to the shareholders.

e. None of the above.