Richard, Frank and Jim are all of the common shareholders of Raindrop Water Park Inc., each owning 10 shares. Shortly after the corporation was formed, the three shareholders timely made an election under Sub-Chapter S of the Internal Revenue Code. Last year, the corporation earned a net profit of $90,000, from which each shareholder received $20,000. Although each shareholder received only $20,000 from the corporation, Richard, Frank and Jim must each report income from the corporation in the amount of $30,000 on their personal income tax returns. Question 26 options: True False