Which of the Following Is Not a True Statement

question 49

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 ownerswho also work for the S corporation 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:

Sensory Adaptation

The process by which sensory receptors become less responsive to constant stimuli over time.

Absolute Threshold

The minimum intensity of stimulation that must occur before you experience a sensation.

Detection Threshold

The minimum level of intensity at which a stimulus is perceived or detected by the sensory system.

Just Noticeable Threshold

The minimum difference in stimulation that a person can detect 50% of the time; also known as the difference threshold.