1.) A C corporation:

A. Must carryback a capital loss 2 years and forward 20 years

B. Treat any capital loss carried back or carried forward to another year as a short- term capital loss in that year

C. May carryback an excess charitable contribution three years

D. Must carryback an NOL 2 years before it may carry it forward 20 years.

2.) Paula receives a liquidating distribution from Pell Company as part of a redemption of all of its stock. Paula's basis for her Pell stock is $10,000. In exchange for her stock, Paula receives cash of $5,000 and also receives property with an $8,000 basis and a $15,000 FMV that is subject to a $2,000 mortgage. What is Paula's recognized gain?