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Anna's Creations is a craft store organized as a C corporation. Anna is the sole shareholder of the corporation. She works full time for the

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Anna's Creations is a craft store organized as a C corporation. Anna is the sole shareholder of the corporation. She works full time for the corporation and receives a salary of $62,000. Which of the following correctly describes the federal income tax treatment of this salary at the entity and individual levels? Anna's salary is: Included in taxable income at the entity level. It is included in wage income on Anna's individual return. Deducted from taxable income at the entity level. It is included in wage income on Anna's individual return. Deducted from taxable income on the corporation's tax return. It is included as pass-through income on Schedule E of Anna's individual return. Deducted from taxable income on the corporation's tax return. It is not taxable on Anna's individual return. Mark for follow up

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