Question 1 of 8. ABC, Inc. is a C corporation with two 50% shareholders, Maria and Stuart. Maria works full-time for the corporation and receives a salary of $65,000 per year for her work. Stuart does not perform services for the corporation. In addition, this year, the corporation decided to make a distribution of $50,000 of profit to each shareholder ($100,000 total). Which of the following is TRUE? The corporation may elect to treat the $50,000 profit distributions as salary and report Form W-2 wages of $115,000 for Maria and $50,000 for Stuart The corporation may deduct Maria's S65,000 in salary on its corporate income tax return The corporation will pay income tax at a rate equal to the weighted average of each shareholder's personal marginal tax rate Stuart's personal assets can be accessed by the creditors of ABC corporation if ABC defaults on its debts