Which of the following statements is not true of S corporations? Oa. If an otherwise qualifying shareholder acquires 40 percent of the stock of an S corporation, the new shareholder cannot cause the Ob. If a taxpayer purchases stock in an S corporation from another shareholder during the year, the new shareholder may report the entire Oc. The amount of S corporation losses that a shareholder of an S corporation may report on his or her tax return is limited to the basis of the Od. Section 1231 gains and losses pass through separately to stockholders of an S corporation. corporation to lose its S corporation election. amount of any loss for the year attributable to the shares purchased. stock plus any loans made by the shareholder to the corporation. Oe. S corporations are corporations that receive tax treatment similar to that given partnerships