Which statement is FALSE?

a) Deirdre is a sole proprietor. She will report her business income on Schedule C (Form 1040) and pay ordinary income tax and self-employment tax.

b) Mary Lou is a limited partner. She does not perform any services for the partnership, but receives guaranteed payments. The partnership will report her share of income on Schedule K-1 (Form 1065). Mary Lou will pay income tax on the entire amount. She will not pay self-employment tax.

c) Carlos is a shareholder in an S corporation. He owns 15% of the shares and does not perform services for the company. The company will report his share of income on Schedule K-1 (Form 1120-S). Carlos will not pay self-employment tax on his share of the ordinary income. Antonio is a shareholder in a C corporation. He owns 55% of the shares and performs services for the company. His wages will be reported on Form W-2, and his share of the company's ordinary income will be reported to him on Schedule K-1 (Form 1120). Carlos will not pay self-employment tax on his share of the ordinary income.

d) Antonio is a shareholder in a C corporation. He owns 55% of the shares and performs services for the company. His wages will be reported on Form W-2, and his share of the company's ordinary income will be reported to him on Schedule K-1 (Form 1120).