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Which one of the following statements is not correct?

Which one of the following statements is not correct?

a.

S corporation shareholders are taxed on their pro rata share of each item of their corporation's separately stated income, gain, loss, deduction, and credit.

b.

Two-percent shareholders are treated as self-employed individuals for purposes of determining how they are taxed on fringe benefits.

c.

Income that S corporation shareholders are required to include in their gross income is not subject to the self-employment tax.

d.

S corporation shareholders must receive reasonable compensation for services that they perform for their corporation.

Top Answer

a .S corporation shareholders are taxed on their pro rata... View the full answer

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