Which of the Following Is Not a True Statement

question 21

Multiple Choice

Which of the following is not a true statement?

• A)For shareholder-employees who own 2 percent or less of the entity, the S corporation gets a tax deduction for qualifying fringe benefits, and the benefits are nontaxable to the employees.
• B)For shareholder-employees who own more than 2 percent of the S corporation, the S corporation gets a tax deduction, but the otherwise qualifying fringe benefits are taxable to the shareholder-employees who own more than 2 percent.
• C)S corporation owners have a tax incentive to pay themselves a low salary.
• D)An S corporation shareholder's allocable share of ordinary business income (loss)is not classified as self-employment income for tax purposes.
• E)None of the choices are false.

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Definitions:

Subscript

An index used to refer to an individual element within an array or other collection type in programming.

Array Name

In programming, the identifier given to an array, representing the location of its initial element in memory.

Pointer

A variable that stores the memory address of another variable, allowing for direct manipulation of and access to the value at that address.

Array Name

The identifier given to a collection of related variables of the same type in programming languages.