Which one of the following statements is not correct?
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.
Two-percent shareholders are treated as self-employed individuals for purposes of determining how they are taxed on fringe benefits.
Income that S corporation shareholders are required to include in their gross income is not subject to the self-employment tax.
S corporation shareholders must receive reasonable compensation for services that they perform for their corporation.
a .S corporation shareholders are taxed on their pro rata... View the full answer