Question Number One

Twenty true$-$false statements appear below. You must answer all of them. For each statements you answer, insert $"$ T $"$ or $"$ F $"$ in the appropriate place on the separate answer sheet.

$1.$ A stock distribution in lieu of money is nontaxable only if the recipient opts to receive stock.

$2.$ If a taxpayer receives corporate stock as compensation for services rendered, the par value of the stock at the time of transfer is included in the recipient's gross income.

$3.$ The exclusion for interest earned on U$.$S$.$ savings bonds used to finance higher education of the taxpayer is available only to the individual who purchased the bond.