1. Which statement is false? a. stock basis may not go below zero b. AAA may not go below zero c.Losses are allocated on a daily basis to all shareholders d. the AAA may be greater than stock basis 2.King Corporation an S corporation, is 50% owned by Crystal. on January 1,2012, Crystal's basis for King stock is $30,000. During the year, King had an ordinary loss of $30,000, tax-exempt income of $18,000, dividend income from domestic corporations of $10,000, a long-term capital loss of $20,000, and a short-term capital loss $8,000. Crystal's basis for the King stock at the beginning of 2012 is: a.$0 b.$6,000 c.$15,000 d.$27,000 3. A calender year S corporation (without earnings and profits) incurred an ordinary loss of $20,000 for 2011. Its sole calendar-year shareholder had a stock basis of $10,000 and debt with a basis of $15,000 at the beginning of 2011. The S corporation had an ordinary income of $15,000 for 2012 and distributed $10,000 to its shareholder during 2012. As a result, what is the shareholder's debt basis at January 1,3012? a.$5000 b.$10,000 c.$15,000 d.$20,000