The Income Tax Consequences of a Business Transaction Depend on Which

The income tax consequences of a business transaction depend on which entity engages in the transaction because:

A) The amount of income from the transaction depends on which type of entity engaged in the transaction.
B) The transaction may be taxable or nontaxable depending on which type of entity engaged in the transaction.
C) The rate at which the income from the transaction is taxed depends on which type of entity engaged in the transaction.
D) The character of the income from the transaction depends on which type of entity engaged in the transaction.