Which of the following statements is true about an S corporations capital gains and losses?

A. They are stated separately and passes through to the shareholders.

B. They are taxed to the corporation using the maximum corporate rate.

C. They may be taxed at the corporate level or passed through to the shareholders if the majority of the shareholders elect to do so by the due date of the tax return.

D. They must be allocated on a pro rata daily basis even if the closing-of-the-books method of income allocation is elected upon a shareholder termination.