with alk with your doctu the. e par ap Question 41 of 75. Lenny is the sole corporation. 0000 shareholder of an S corporation. Each year, he draws a salary and receives a distribution of profits from the Which of the following statements is TRUE? Lenny's share of the profits will not be subject to social security or medicare taxes. Lenny's salary will be treated as self-employment income and must be reported on Schedule C. Lenny will pay income taxes only on the portion of the profits that he actually distributes to himself. for the services he provides. Lenny may determine his salary by selecting the amount that provides him the greatest tax benefit, regardless of the market rate