Which of the following statements is false comparing the corporate income tax formula to the individual income tax formula. Both corporations and individuals are required to include all income from whatever source derived except that which is explicitly excluded by the IRS in their gross income. Both corporations and individuals are allowed a standard deduction to arrive at taxable income. O AGI is used by individuals to calculate phase-outs of various deductions and credits. O Only individuals are allowed exemptions to arrive at taxable income.