Which of the following statements is FALSE?

Group of answer choices

A) An S corporation election may be terminated if the corporation earns an excessive amount of passive income from sources such as royalties, rents, dividends, interest, and annuities.

B) In order for the S election to terminate due to excessive passive income, the S corporation must have passive income in excess of 25% of its gross receipts for three consecutive tax years.

C) Regardless of how much passive income an S corporation has, or how long it has collected passive income, the S election will not terminate if the S corporation has never been a C Corporation.

D) All of the above statements are TRUE.

E) B & C are both FALSE.