Which of the Following Is Not a True Statement

question 31

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

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Definitions:

Genetic Makeup

The complete set of genes or genetic material present in a cell or organism, synonymous with genotype.

Hans Eysenck

A British psychologist best known for his work on intelligence and personality, especially his development of the theory of personality traits.

Carl Jung

A Swiss psychiatrist and psychoanalyst who founded analytical psychology, known for concepts like archetypes, collective unconscious, and individuation.

Self-actualizing

The process of realizing and fulfilling one's potential and capabilities, as the ultimate level of psychological growth according to Maslow's hierarchy of needs.