Which of the Following Is Not a True Statement

question 106

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 more-than-2-percent shareholder-employees.
• 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 these statements is false.

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Definitions:

Evaluation Apprehension Model

A theory suggesting that anxiety about being evaluated by others can lead to increased or decreased performance depending on the individual and the context.

Social Facilitation

The tendency for individuals to perform better on simple or well-learned tasks in the presence of others than when alone.

Discretionary Task

refers to a job or an assignment that requires personal judgment or choice in its execution, often without strict guidelines or procedures.

Process Loss

Reduction in group performance compared to individual performance, often due to coordination and motivation problems.