Using the legend provided, classify each statement accordingly.

Question $1$ options:

$1234$

The corporation may utilize an NOL carryover from a prior year.

$1234$

A deduction for organizational expenditures is allowed.

$1234$

Cannot have a partnership as a shareholder.

$1234$

The corporation's bonus depreciation deduction is claimed by the corporation $($not the shareholders$).$

$1234$

Amount the corporation borrows from a bank increases the basis of its shareholders in their stock.

$1234$

A dividends received deduction is not allowed.

$1234$

A shareholder cannot have a negative basis in his or her stock.

$1234$

Cannot be a shareholder in another corporation.

$1234$

A resident and citizen of Mexico can be a shareholder.

$1234$

Corporations can have both common and preferred stock outstanding.

$1234$

Upon its formation, $351$ tax deferral can apply.

$1234$

Tax$-$exempt income received by the corporation will pass through to its shareholders as tax$-$exempt income.

$1.$

Applies only to the income taxation of C corporations.

$2.$

Applies only to the income taxation of S corporations.

$3.$

Applies to both the income taxation of C corporations and S corporations.

$4.$

Applies to neither the income taxation of C corporations nor of S corporations.