Gain is not recognized on a transfer or property to a corporation in exchange for stock if ________________. Question 1 options:

the transferor receives only stock from the corporation the requirements of IRC Section 351 are followed the transferor owns at least 50% of the corporation afterward liabilities are not transferred to the corporation

Question 4 (1 point)

Two shareholders transfer property to a corporation in exchange for 100% of the corporate stock. Shareholder #1 transfers property with a basis of $50,000 and a value of $80,000 for 2/3rds of the corporate stock. Shareholder #2 performs incorporation and other startup services for the corporation (valued at $40,000) for 1/3rd of the stock.

SELECT THE TRUE STATEMENT FROM THE LIST BELOW!!

	Only Shareholder 1's contribution is completely nontaxable.
	Only Shareholder 2's contribution is taxable
	Both shareholders' contributions are nontaxable
	Both shareholders' contributions are taxable

Question 8 (1 point)

If property contributed by a shareholder in a valid Section 351 exchange is encumbered by a liability that is assumed by the corporation, ________________.

SELECT THE BEST ANSWER FROM THE LIST BELOW!!

Question 8 options:

	The amount of the liability assumed is treated as boot received by the transferor (just like the normal exchange rules)
	The amount of the liability assumed is not treated as boot received by the transferor
	The treatment of the liability assumption depends upon whether there is a legitimate business purpose for the property to be encumbered by a liability prior to the transfer
	none of the above

Question 9 (1 point)

Regarding the basis of the corporation in property received in a Section 351 exchange, select ALL the true statements from the list below.

Question 9 options:

	The general rule is that the corporation's basis of property received in a Section 351 exchange is the same as the basis of the shareholder in the property.
	The general rule is that the corporation's basis of property received in a Section 351 exchange is the same as the basis of the shareholder in the property plus any gain that was recognized by the shareholder in a Section 351 transaction.
	The general rule is that the corporation's basis of property received in a Section 351 exchange is the same as the fair market value of that property at the time of the contribution.
	A departure from the general rule may be followed if a shareholder contributes property with an overall built-in loss

Select all the correct answers below regarding dividend income received by shareholders.

Question 14 options:

	In general Corporations get preferential rates on qualified dividends received from other corporations.
	In general shareholders who are individuals get preferential rates on qualified dividends received from corporations.
	In general corporations receive an exclusion of part of qualified dividends received from other corporations.
	In general shareholders who are individuals receive a partial exclusion from income for qualified dividends received from other corporations.
	Both corporations and individuals have a minimum number of days requirement for holding corporate stock in order to receive any of these benefits allowed for dividend income.