Question 58 of 75 . Which of the following statements about shareholders of a C corporation is TRUE? All of a C corporation's income, deductions, and credits are passed through directly to the shareholders. The amount of losses shareholders may have to sustain is unlimited. Shareholders of a C corporation are taxed only when the corporation distributes earnings and profits. Shareholders of a C corporation pay a flat tax rate of 21% on all profits distributed to them. Mark for follow up