True or False:

1. A business cannot be taxed as a corporation unless it is incorporated under local law.
2. A limited liability company will always be taxed as a corporation.
3. A corporation must adopt a natural business year.
4. There is no tax on the first $400 of corporate taxable income.
5. A disadvantage of corporate structure is that the C corporations gains and losses do not pass through to shareholders.
6. A partnership is not a tax-paying entity.
7. The dividends received deduction is 50 percent of dividends received out of the earnings and profits of taxable, domestic corporations.
8. Code Sec. 351 is an elective provision.
9. When a corporation receives property from a shareholder in exchange for stock its basis equals that of the shareholder, increased by any gain recognized by the shareholder.
10. In order to fall within the parameters of Code Sec. 351 (i.e., to achieve tax-free treatment), when incorporating a business a transferor may not receive securities.