Problem regarding sole propritorship

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Luis is the sole shareholder of Stork Inc. a C corporation, and Eduardo owns a sole propritorship. Both businesses were started in 2010 and make a profit of 80,000 this year. Each owner withdraws 50,000 from his business during the year. Which of the following statements relating to 2010 is incorrect?

A) Eduardo must report 80,000 of net profit on his individual return

B) Luis must report dividend income of 80,000

C) Eduardo's propritorship is not subject to an entity (seperate) level income tax

D) Stork Corporation must pay tax on 80,000

E) none of the above

Reference no: EM13155153

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