Mr. and Mrs. Chang are going to establish a manufacturing business. They anticipate that the business will be profitable immediately due to a patent Mrs. Chang holds. They predict that profits for the first year will be about $300,000 and will increase at a rate of about 20% per year for the foreseeable future. Assume that they will be in the 37% Federal income tax bracket. Advise the Changs on the form of business entity they should select by classifying the following statements as either "True" or "False", a. b. The earnings of the S corporation would be taxed to the Changs rather than at the corporate level. The C corporation election could result in double taxation to the Changs. C. They should consider both tax and nontax factors. d. e. f. 9. The corporate form normally provides the greatest ease and potential for obtaining owner financing. If the Changs select the partnership form, the profits of the entity will be taxed to the two owners. Only a C corporation will provide limited liability for the Changs. Operating as a qualified joint venture, a C corporation, or an S corporation will generate a qualified business income deduction for the owners ( 199A).