Personal Service Corporations (PSCs)have Certain Special Characteristics

Personal Service Corporations (PSCs) have certain special characteristics.Which of the following describes a PSC?
I.A PSC is not permitted to reduce any of its income from portfolio investments with a passive activity loss.
II.The owner-employees aggregately own more than 95% of the corporate stock.
III.The performance of personal services by owner-employees is the principal activity.
IV.PSCs are subject to a flat income tax of 35% of taxable income.
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A) Only statement I is correct
B) Only statement III is correct.
C) Only statements III and IV are correct.
D) Only statements II,III,and IV are correct.
E) Statements I,II,III,and IV are correct.