5. In a complete liquidation a shareholder receiving multiple distributions will recognize loss when:

A.__ He receives a distribution greater than his stock basis

B.__ He receives the first distribution and allocates the loss

C.__ He receives the last distribution

D.__ He receives the first distribution

6. In a complete liquidation where the transaction is kept "open due to uncertainties", when the transaction closes:

A.__ The total gain or loss will be the same as if the transaction has closed originally and the character of the gain or loss will always be the same

B.__ The total gain or loss will be the same as if the transaction has closed originally and the character of the gain or loss will never be the same

C.__ The total gain or loss will be the same as if the transaction has closed originally and the character of the gain or loss may be the same

D.__ The total gain or loss may be different but the character of the gain or loss will always be the same

7. In a complete liquidation where a shareholder assumes debt as part of the liquidating distribution:

A.__ He will increase his recognized gain by the amount of the debt

B.__ He will decrease his recognized gain by the amount of the debt

C.__ He will increase his basis in the property by the amount of the debt

D.__ He will decrease his basis in the property by the amount of the debt

8. If property was contributed to a corporation in a 351 transaction with a basis of 10 and a FMV of 3 and then distributed pro rata in a complete liquidation to a majority shareholder within 5 years of being acquired:

A.__ The corporation will recognize loss on the complete liquidating distribution

B.__ The shareholder will recognize loss on the transaction

C.__ The corporation will not recognize loss on the complete liquidating distribution

D.__ The corporation will defer deducting the loss into the future.

9. If a "C" corporation converts to an "S" corporation with appreciated assets at that time:

A.__ The "C" corporation will recognize loss on the complete liquidating distribution

B.__ The "S" corporation will recognize loss on the "C" corporation's complete liquidation

C.__ The "C" corporation will be taxed on its built in gain due to the conversion

D.__ The "S" corporation may recognize gain in the future due to the appreciated assets.

10. If a corporation liquidates and reorganizes, the expenses of the liquidation and reorganization:

A.__ Generally are fully deductible in the year paid

B.__ Generally are totally deferred and not deductible in the year paid

C.__ Generally will be partly deductible in the year paid

D. __ Generally will never be deductible