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Murphy owns 10% of an S Corporation. He does not perform services for the company. Which statement is true about Murphy? A. Murphy will pay

Murphy owns 10% of an S Corporation. He does not perform services for the company. Which statement is true about Murphy? A. Murphy will pay self-employment tax on guaranteed payment and his reasonably compensation. B. Murphy will not pay any tax on his share of income unless he takes distributions. C. Murphy will pay income tax on his share of ordinary income. D. The company will issue Murphy Form 1099 NEC to show his income subject to tax.

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