Identify which of the following statements is true, Capital losses incurred by a C corporation can be used to offset the corporation's ordinary income. All of the above are false. O corporation operating losses are deductible by the individual shareholders... If a C corporation does not distribute its income to its shareholders annually, double taxation cannot occur. Identify which of the following statements is true, Capital losses incurred by a C corporation can be used to offset the corporation's ordinary income. All of the above are false. O corporation operating losses are deductible by the individual shareholders... If a C corporation does not distribute its income to its shareholders annually, double taxation cannot occur