Which of the following statements about business entity income is TRUE?

Blair is a shareholder in a C corporation. She owns $55\%$ of the shares and performs services for the company. Her wages will be reported on Form W$-2,$ and her share of the company's ordinary income will be reported to her on Schedule K$-1($Form $1120).$

Estrada is a limited partner who materially participates in the partnership and receives guaranteed payments. The partnership will report her guaranteed payments on Schedule K$-1($Form $1065).$ Estrada's guaranteed payments will be subject to self$-$employment tax.

Laura is a shareholder in an S corporation. She owns $15\%$ of the shares and does not perform services for the company. The company will report her share of income on Schedule K$-1($Form $1120-$S$).$ Laura will pay self$-$employment tax on her share of the ordinary income.

Tanita is a sole proprietor. She may report her business income on Schedule C $($Form $1040)$ or Form $1065.$

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