Sandy,Sue,and Shane Plan to Open Friends,an Upscale Restaurant

Sandy,Sue,and Shane plan to open Friends,an upscale restaurant.They project that the business will incur a $90,000 operating loss in Year 1,and $75,000 of profit in Year 2.Which of the following statements is true?

A) If the business is a C corporation,it will not have a regular tax liability during the first two years.
B) If the business is a general partnership,it will owe income tax in Year 2.
C) If the business is an S corporation,the Year 1 loss can be allocated entirely to Sandy.
D) If the business is a C corporation,it will owe income tax in Year 2.