The S Corporation Form Is Often Compared to the Partnership

The S corporation form is often compared to the partnership form.Though they are similar in many ways, there are significant differences.Which of the following comparative statements is true?

A) S corporations pay income tax on net ordinary income while partnerships do not.
B) Partnership transfers of property to owners are taxable transactions at the partnership level, whereas corporate transfers of property to owners are not taxable to S corporations.
C) Self-employment taxes on a partner's guaranteed compensation are not a deductible expense for the partnership, but FICA taxes on a shareholder's reasonable salary are deductible by the S corporation.
D) A partnership pays tax on capital gains and distributes capital losses to the partners, while an S corporation flows through capital gains and losses to the shareholders.