True or False

1. If a corporation gives a non-cash property distribution (for example, a car) to a shareholder, the amount of the distribution is based on the tax basis of the car to the corporation right before the shareholder.

2. A corporation never reports any gain or loss on any non-cash assets distributed to shareholders in an operating (non-liquidating) distribution.

3. When computing E&P, taxable income is not adjusted for section 179 expenses.

4. When computing current E&P, taxable income must be adjusted for the deferred gain in a section 1031 like-kind exchange.