Identify Which of the Following Statements Is True

Identify which of the following statements is true.

A) When an S corporation's shares are sold by a shareholder during a tax year, the transferee's share of the earnings is reported from the day after the transfer date through the end of the tax year.
B) Long- term capital gains may be subject to double taxation if the gains are subject to both the excess net passive income tax rules and the built- in gains tax rules.
C) Special allocations of ordinary income or loss and separately stated items that are available for partnerships are also permitted with S corporations.
D) All of the above are false.