Yes, it passes through. Same goes for the FS700/7Q. I use the C300mkii at work and the image is absolutely amazing. It's just beautiful to look at. I believe the C300ii and C500 have a comparable image.
I am seriously considering the C500 plus a Convergent recorder as our next camera. We're a small crew, and we've always been a couple years back in the latest gear. Still shooting on the R1MX, and for our needs it makes a great image. Only problem is it's so darn heavy. Almost bought an F5, and really looked hard at the FS7, but I'm not a fan of Sony's color. Just something off about it to me. FS7 is cheap enough to get away with it, but the menu and other ergonomics are awful to me. Anyway, I've seen some truly beautiful footage from C500's. Hard to think that it won't hold up for several more years.