Hedeon is the sole owner of Cliff Company. For the only income of Cliff was a longterm capital gain of $ The business made no distributions during the year to Hedeon. Which of the following statements is true?
a If Cliff Company is an S corporation, Hedeon will report none of the $ longterm capital gain on his personal tax return.
b If Cliff Company is a C corporation, a preferential tax rate applies to the $ longterm capital gain.
c If Cliff Company is a C corporation, Hedeon will report the $ longterm capital gain on his personal income tax return.
d If Cliff Company is a sole proprietorship, Hedeon must report the $ longterm capital gain on his personal income tax return.
e If Cliff Company is an S corporation, the S corporation must pay tax on the $ longterm capital gain at a flat rate of
