Identify which of the following statements is true.
A)C corporation operating losses are deductible by the individual shareholders.
B)If a C corporation does not distribute its income to its shareholders annually, double taxation cannot occur.
C)Capital losses incurred by a C corporation can be used to offset the corporation's ordinary income.
D)All of the above are false.

Question

Quizplus · Accepted Answer

None of the statements are true. 
A) C corporation operating losses are not deductible by individual shareholders. 
B) Double taxation can still occur even if the income is not distributed to shareholders annually. 
C) Capital losses incurred by a C corporation can only be used to offset capital gains, not ordinary income.

Identify Which of the Following Statements Is True