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Rachel is the sole member of an LLC, and Jordan is the sole shareholder of a C corporation. Both businesses were started in the current

Rachel is the sole member of an LLC, and Jordan is the sole shareholder of a C corporation. Both businesses were started in the current year, and each business has a long-term capital gain of $10,000 for the year. Neither business made any distributions during the year. With respect to this information, which of the following statements is correct? a.The C corporation receives a preferential tax rate on the LTCG of $10,000. b.Rachel must report $10,000 of LTCG on her tax return. c.The LLC must pay corporate tax on taxable income of $10,000. d.Jordan must report $10,000 of LTCG on his tax return. e.None of these choices are correct.

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