10. A Section 351 exchange of property for stock, if properly done, results in

a.	nonrecognition of gain or loss to the transferor-shareholder	c.	immediate taxation of gain or loss to the corporation
b.	a tax deferral on any gain or loss realized by the transferor-shareholder	d.	(a) and (b) only

12. Assume that John and Kevin want to incorporate a business. John performs services for the corporation and receives $20,000 worth of stock. Kevin transfers assets worth $80,000 and receives stock worth that much.

a.	John does not recognize any gain under Section 351	c.	John must include $20,000 in his taxable income
b.	Kevin must recognize gain since John does not have control of the corporation	d.	Kevin must recognize gain since he does not have control of the corporation

11. If property, other than stock of the transferee-corporation, is received by the transferor from the corporation in a Section 351 exchange, then as to the transferor-shareholder:

a.	No gain is recognized at this time	c.	the fair market value of the property and the amount of cash received must be recognized if more than realized gain
b.	the fair market value of the property and the amount of any cash received must be recognized if less than any realized gain	d.	The realized gain is always the amount recognized