Which of the following statements is FALSE?

Group of answer choices

A) Unlike C Corporation shareholders, S corporation shareholders increase the basis of their stock by their allocable share of corporate income that is passed through to them, and reduce their stock basis by their pro-rata share of losses, deductions, and non-deductible expenses.

B) If an S corporation has no earnings and profits (or was never a C Corporation), distributions to shareholders are treated as tax-free reductions in the basis of the shareholder's stock.

C) If an S corporation shareholder is compelled to make a payment on an S corporation debt that was guaranteed by the shareholder, the shareholder may increase their debt basis by the amount paid.

D) An S corporation shareholder may obtain debt basis by either acting as a guarantor or surety on an S corporation debt.

E) ALL of the above statements are TRUE.