Which Statement Is Incorrect

question 9

Multiple Choice

Which statement is incorrect?

• A)S corporation status allows shareholders to realize tax benefits from corporate losses immediately.
• B)Shareholder-level tax on corporate profits can be eliminated by a step-up in the basis of the stock upon the shareholders death.
• C)Less than 50% of corporations make the S election.
• D)An S corporation resembles an LLC for Federal income tax purposes.
• E)None of the above.