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:

Practical and Ethical Reasons

Justifications or motives for actions that are based on practicality, effectiveness, and alignment with moral principles.

Naturalistic Observations

A research method used to systematically observe and record behavior in its natural environment without manipulation or control.

Case Studies

Detailed examinations of a single subject (individual, group, or event) to uncover patterns, identify causes, and derive insights.

Surveys

Research methods that involve collecting data from a predefined group of respondents to gain information about attitudes, opinions, behaviors, or characteristics.