True or False, If False explain:

1. An information return must be filed on Form 8820 with the IRS reporting the identity of parties to the reorganization, the type of reorganization effectuated and failure to file the return will result in interest and penalties.

2. A Corporation transferred the assets of one of its divisions to B Corporation, an 80 percent owned subsidiary that has been in business for ten years, and distributed 90 percent of the consideration received to its shareholders. The reorganization will fail because A failed to distribute all of the proceeds to shareholders.

3. For purposes of the Type A reorganization, State law requires that all shareholders must affirmatively vote for a proposed merger or the transaction will fail to be accorded reorganization status