43. Which of the following statements about partnerships is false A. A partnership is a legal entity that may enter into valid contracts B. Partnerships are unincorporated entities. C. Only individuals may be partners in a partnership etimes referred to as passthrough entities since they do not pay federal income tax. 44. Which of the following statements regarding S corporations is true? A. An S corporation may have no more than 50 sharcholders. B. Any individ C. An S corporation may have only one class of stock. D. An S ual, estate, corporation, or trust may be an S corporation shareholder. corporation shareholder's allocable share of ordinary income is subject to self-employment tax. 45. Cactus Company is a calendar year S corporation with the following current year information: $ 120,000) Operating loss Liabilities: Notes payable, City Bank Notes payable, Jake Crow 20,000 20,000 On January 1, John James bought 50% of Cactus Company stock for $30,000. How much of the operating loss may John deduct on his Form 1040? A. $60,000 B. $30,000 C. $40,000 D. $50,000