The two equal shareholders of a C corporation are thinking of filing an election to have the company treated as an S corporation. Which of the following consequences is an advantage of this election?

(A) The corporations capital losses can be claimed on the tax returns of the shareholders.

(B) The corporations tax-free fringe benefits for the shareholders will be deductible by the corporation.

(C) The corporations net operating loss carryovers from prior years are immediately deductible by the shareholders.

(D) The shareholders of the S corporation will be taxed only on distributions from the corporation.