Identify Which of the Following Statements Is True

Identify which of the following statements is true.

A) Tax- exempt interest earned by an S corporation is not reported to its shareholders because it is excluded from the shareholders' gross income.
B) An NOL is incurred by a C corporation in the current tax year. The C corporation makes an S election for the following tax year. The entire C corporation NOL carryover can be passed through to the S corporation's shareholders at the end of the following tax year.
C) Perry Corporation, an S corporation, receives $10,000 of dividends from a 25%- owned domestic corporation. Perry is allowed an 80% dividends- received deduction with respect to the distribution.
D) All of the above are false.