Question 8 3.03 points Save Answer West Corporation purchases 50 shares (less than 1%) of Perch Corporation common stock on April 3. The ex-dividend date is April 4. West Corporation pays $60,000 for the stock and receives a dividend of $5,000 on the Perch stock. On May 1, West Corporation sells the Perch stock for $45,000. West's taxable income before the dividends-received deduction is $4,000. West's dividends-received deduction is $0. $3,500 $3,200. $2,800 Identify which of the following statements is true. Section 351 applies exclusively to the formation of a new corporation. Section 351 only applies to individual transferors. Section 351 applies to property transfers in exchange for stock. All of the above are false. Which of the following statements is correct? S shareholders are only taxed on distributions. S shareholders are taxed on their proportionate share of earnings that are distributed. S shareholders are taxed on their proportionate share of earnings whether or not distributed. An owner of a C corporation is taxed on his or her proportionate share of earnings