Roger owns a sole proprietorship, and Hope is the sole shareholder of a C corporation. In the current year both businesses make a net profit of $320,000. Neither business distributes any funds to the owners in the year. For the current year, Roger must report $320,000 of income on his individual tax return. Hope is required to also report $320,000 of income from the C corporation on her individual tax return.
a.) True
b.) False