Question 1 of 105. Which of the following statements regarding C corporations is FALSE? corporations are generally not subject to corporate income tax. O C corporations are separate entities for tax purposes. O Shareholders of a C corporation have limited liability. O Sharehold ers of a C corporation are taxed only when the corporation distributes earnings and profits. Mark for follow up Question 2 of 105. Why is the election for S corporation status attractive? O S corporations have a simplified tax return. S corporations are easier to organize O An S corporation has the legal benefits of a corporation and the tax benefits of a partnership. O An S corporation has an additional 30 days to file its tax return