17. Shareholders are allowed to exclude gain realized on qualifying subsection 351 exchanges.

True

False

18. Entertainment is not deductible for tax purposes.

True

False

19. Fernando Corporation has a a net operating loss during 2021 in the amount of $123,000 and a loss of $100,000 during 2022. The Corporation wants to carry-back the loss to 2020. How much can the corporation carry-back during 2021?

$123,000

$0

$223,000

$100,000

20. Assume Lexi contributes land to Lex partnership with a fair market value of $100,000 and a basis of $40,000. What amount of gain or loss would she recognize on the contribution?

$100,000

$0

$60,000

$40,000

21. Assume that Donna contributed $125,000 in cash to Donna Partnership in exchange for her partnership interest and that Donna Partnership had no liabilities. The partnership is thinking about buying an asset worth $100,000 with a loan. What is Donna's current outside basis in her partnership interest after the contribution?

$100,000

$125,000

$25,000

$225,000

22. When a shareholder does work as an employee of and receives a salary from an S corporation, the S corporation treats this salary payment like that made to any other employee.

True

False