Tax Drill $-$ S corporation Overview

Indicate whether the following statements are "True" or "False" regarding the effects that S corporation status has on shareholders.

a$.$ For Federal income tax purposes, the taxation of S corporations resembles that of partnerships.

b$.$ S corporations are treated as partnerships under state law.

c$.$ Payments to S shareholders by the corporation are distributed tax$-$free to the extent the distributed earnings were previously taxed.