1. For tax purposes, sole proprietorships pay sole proprietors guaranteed payments as compensation for their services.

   True

   False

2. Business income allocations to owners from an LLC that is taxed as a partnership are subject to self-employment tax if the owners are significantly involved in the entitys business activities.

   True

   False

3. An S corporation shareholder who is not a passive investor is allowed to deduct a business loss allocation from the S corporation to the extent of the shareholders basis in the stock no matter how large the loss.

   True

   False

4. Beginning in 2018, C corporations are no longer subject to double taxation.

   True

   False