A business entity's taxable income before the cost of certain fringe benefits paid to owners and other employees is $400,000. The amounts paid for these fringe benefits are reported as follows. Assume the fringe benefit plans are not discriminatory. The business entity is equally owned by four owners. Group term life insurance Lodging incurred for the convenience of the employer Qualified retirement plan Owners Other Employees $20,000 $40,000 50,000 75,000 30,000 90,000 a. Calculate the taxable income of the business entity if the entity is a partnership, a C corporation, and an S corporation. The taxable income of the business entity, if it is a partnership, is t and if the entity is an S corporation, it is I If the entity is a C corporation, it is s b. Indicate whether the following statements are "True" or "False" regarding the effects on the owners for each of the three business forms. 1. Greater-than-2% shareholders of an S corporation are treated the same as employees for fringe benefit purposes. 2. For group term life insurance and lodging to be treated as fringe benefits, the individual must be an employee. 3. For the owner-employees of a partnership or an S corporation who have contributions made to their retirement plans by the business entity, the amounts paid must be included in their gross Income. 4. Regardless of the entity form, the amounts paid to a qualified retirement plan are deductible by the business entity. 80 F3 888 Fa Previous Save and Exit Submit Assignment for Gra Dil DD 9 149) FO PT FR FO FIO FS1 12