Rachel Is the Sole Member of an LLC,and Jordan Is

Multiple Choice

Rachel is the sole member of an LLC,and Jordan is the sole shareholder of a C corporation.Both businesses were started in the current year,and each business has a long-term capital gain of $10,000 for the year.Neither business made any distributions during the year.With respect to this information,which of the following statements is correct?

A) The C corporation receives a preferential tax rate on the LTCG of $10,000.
B) The LLC must pay corporate tax on taxable income of $10,000.
C) Jordan must report $10,000 of LTCG on his tax return.
D) Rachel must report $10,000 of LTCG on her tax return.
E) None of the above.