Question 2 3.03 points Save Answer Identify which of the following statements is true. A corporation must recognize a loss when transferring noncash boot property that has declined in value and its stock to a transferor as part of a Sec. 351 exchange Section 351 provides for nonrecognition of gain for the transferee corporation when it distributes appreciated and that is boot property to a shareholder The transferee corporation's holding period for assets acquired in an exchange meeting the Sec. 351 requirements includes the transferor's holding period for the property All of the above are false. Trail Corporation has gross profits on sales of $140,000 and deductible expenses of $180,000. In addition, Trail has a net capital gain of $60,000. Tral's taxable income is a $40,000 loss. $20,000 $60,000 a $20,000 loss. Identify which of the following statements is true. A new LLC that is owned by four members elects to be taxed under its default classification (as a partnership) in its first year of operations. The entity is prohibited from changing its tax classification at any time in the future. An unincorporated business may not be taxed as a corporation Under the check-the-box regulations, an LLC that has one member owner) may be disregarded as an entity separate from its owner. All of the above are false