Q&A: In an S corporation, owners choose to reinvest the company’s net income back into the business,?

Question by Dulce: In an S corporation, owners choose to reinvest the company’s net income back into the business,?
In an S corporation, owners choose to reinvest the company’s net income back into the business, ___________.
A. the owners will not have to pay income taxes on that portion
B. the S corporation will have to pay income tax on that portion
C. the owners will have to pay income tax on that portion, regardless of the fact that they did not receive the income
D. the S corporation will not have to pay sales tax on that portion
E. the organization will compensate the owners later in the next year for the money owed them

Best answer:

Answer by KlemKiddleHopper
B would be more accurate

Give your answer to this question below!