Question 48 (2 points) Which of the following is not a correct statement regarding the advantage of the partnership entity form over the C corporation form? A partnership typically has easier administrative and filing requirements than does a C corporation. Partnership income is subject to a single level of taxation; corporate income is double taxed. Partnerships may specially allocate income and expenses among the partners, provided the substantial economic effect requirements are met; corporate dividends must be proportionate to shareholdings. Partners in a general partnership have less personal liability for entity claims than shareholders of a C corporation. All of the above are advantages of partnership taxation. Question 49 (2 points) Which of the following statements is correct regarding partnership or C corporation tax rates? Partners pay tax on their distributive shares of income at a highest rate of 17%. Partners pay a single tax on their distributive shares of income at the tax rate that applies to the partner's situation. C corporations pay a single level of tax on corporate income at rates up to 39%. C corporations pay tax at 21% and the shareholders pay a second tax of 47% when dividends are distributed. Question 50 (2 points) An S corporation must possess which of the following characteristics? Not more than one hundred shareholders. Corporation organized in the U.S. Only one class of stock. All of the above are required of an S corporation. None of the above are required of an S corporation