Which of the following statements is FALSE?

A) A net operating loss is incurred by a C corporation in calendar year 2016 and then makes an S election effective for calendar year 2017. The entire net operating loss carryover of 2016 can be passed through to the S corporation's shareholders at the end of 2017. O B) One of the main reasons S elections are made is to avoid the double taxation of C corporations by having the profits of the corporation "pass-through" to the shareholders pro-rata in accordance with their stock ownership percentage.

C) S corporation losses passed through to shareholders in any tax year are limited to the sum of the shareholder's bases in their stock plus any direct loans made by the shareholder to the S corporation

D) Losses disallowed because of inadequate basis may be carried forward indefinitely and deducted in a subsequent tax year in which the shareholder regains basis in their stock or debt (usually by earning profits in subsequent years or by the shareholder making additional loans to the S corporation).

E) All of the above statements are TRUE.

Which of the following statements is FALSE? to the shaceholders pro-rata in accordance with their stock ownership percentuge. C) corporation losses passed through to sharcholders in any tao year are limited to the sum of the shareholder's bases in their thock plus any diect lains made by the sharcholder to the 5 corporation D) Losses disaliowed because of inadequate basis may be carried forward indefinitely and deducted in a subsequent taxe year in which the shurehcider regains basis in their stock or debt fusually by earning profits in subsequent vears or by the shareholder making additicrol loans to the Scorporation! E) All of the above statements are TRUE