According to the Entity Concept

Multiple Choice

According to the entity concept
I.a sole proprietorship is similar to a conduit entity.
II.a sole proprietor cannot convert nondeductible personal items into deductible business items by commingling expenditures.
III.a partnership is an example of a mixture of a taxable and a conduit entity.
IV.an S corporation is a tax paying entity.
​

A) Statements I and II are correct.
B) Statements II and III are correct.
C) Only statement IV is correct.
D) Statements I, II, and III are correct.
E) Statements I, II, and IV are correct.