Ray is starting a new business and trying to decide between a C corporation, S corporation, and partnership. Which of the following statements regarding his decision is correct?
A. A partner in a partnership is taxed on his or her share of partnership income.
B. An S corporation owner must pay income taxes only on the salary received.
C. A shareholder in a C corporation is taxed on his or her share of corporate income.
D. S corporations pay taxes on their current year income.
Answer: A
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Indicate whether the statement is true or false