The income of an S corporation is computed in much the same manner as that of a partnership.

Question

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The income of an S corporation is reported on the individual tax returns of the shareholders, similar to how the income of a partnership is reported on the individual tax returns of the partners. Both entities are pass-through entities, meaning that the income is not taxed at the entity level but rather flows through to the individual shareholders/partners.

The Income of an S Corporation Is Computed in Much