Your friend Carlos often asks you about tax avoidance strategies. He heard that he can reduce his taxes by putting his investments in a corporation and asks you whether this is true. Explain to Carlos the income tax issues surrounding this strategy. (Select all that apply.) A. Although C corporation income is double taxed (once at the corporate level and again at the shareholder level), the two tax rates may be less than Carlos' marginal tax rate on ordinary income. The first part of the double tax is the 21% corporate income tax, which may be less than or greater than Carlos' marginal tax rate on ordinary income. The second part of the double tax is the 0%, 15%, or 20% tax rate on an individual's qualified dividends, which is less than Carlos' marginal tax rate on ordinary income. This second tax at the shareholder level can be deferred if the corporation does not pay a dividend to Carlos for many years, thereby allowing the investments to grow at a greater rate in the meantime. B. The corporation would have to be treated as a C corporation. If it were treated as an S corporation, the investment income would pass through to Carlos and be taxed at the same rate as if he held the investments himself. C. The corporation would have to be treated as a S corporation. If it were treated as an C corporation, the investment income would pass through to Carlos and be taxed at the same rate as if he held the investments himself. D. If Carlos' investments generate long-term capital gains rather than ordinary income, there would be a tax benefit in holding his investments in a C corporation