Please answer T/F and give explanation. 1. Jerry and Ann form ABC Corporation. Jerry contributes services of $30,000 along with property with a basis of $10,000 and a FMV of $25,000 in return for 30% of the stock in ABC corporation. Ann contributes property with a basis of 10,000 and FMV of $55,000 in return for 70% of the stock in ABC corporation. Ann recognizes a gain $45,000. 2. An S corporation shareholder's stock basis must be adjusted annually. 3. The definition of property as it relates to an IRC 351 exchange includes money. 4. All income that flows-through from a partnership to all partners is always subject to the self-employment tax. 5. A corporation wishes to make the s-corporation election effective from inception of the business. The corporation is incorporated on June 3, 2019, issues stock to its shareholders on July 20, 2019 and begins doing business on September 7, 2019. To be effective since inception, the corporation must make the s-corporation election by October 5, 2019. 6. The assumption of a mortgage by a corporation in a 351 exchange causes a shareholders stock basis to decrease, while any gain recognized due to the receipt of boot makes a shareholders stock basis increase. 7. Jerry and Ann form ABC Corporation. Jerry contributes services of $30,000 along with property with a basis of $10,000 and a FMV of $25,000 in return for 30% of the stock in ABC corporation. Ann contributes property with a basis of 10,000 and FMV of $55,000 in return for 70% of the stock in ABC corporation. Ann recognizes a gain $45,000. 8. Tom is a 50% shareholder in an S-corporation. In 2017, Tom has a basis in his S-corporation stock of $10,000 and no debt basis. In 2017, the S-corporation has a $20,000 ordinary business loss. Tom decides not to take any loss on his 2017 return. In 2018, the company suffers another $20,000 loss. Tom can take the loss he receives from the S-corporation from the 2018 tax year on his 2018 tax return..