Correct Answer: E
Explanation:
Option(E) is correct
There are two main issues with this sentence.
(1) Since the double taxation would occur if the company.., we are dealing with a future hypothetical situation (or possibility) and must use the subjunctive mood. Consequently, if the company were must replace if the company was.
(2) The two things that are true about the owners of the LLC must be parallel: theyreceive...and avoid. The original sentence improperly breaks the parallelism (i.e., the phrase receive..., and they also avoid is not parallel).
A. the subjunctive mood is not used; the sentence is not parallel (i.e., the phrasereceive..., and they also avoid is not parallel)
B. the subjunctive mood is not used
C. the subjunctive mood is not used; the sentence is not parallel (i.e., the phrasereceive..., avoiding is not parallel)
D. the sentence is not parallel (i.e., the phrase receive..., and avoid is not parallel)
E. the subjunctive mood is used; the sentence is parallel (i.e., the phrase receive... and avoid is parallel)