13. John purchased 100 shares of stock from ABC Corp. The purchase price was listed as $100 per share. John transferred property to the corporation which was purported to be worth $10,000 but which was actually worth only $5,000. John, in turn, sold his 100 shares to Barbara for $7,500 a. John is liable for the difference in value for his purchase of "watered stock." b. Barbara is liable to the corporation for $5,000 since she received watered stock, even if she did not know that John had underpaid the corporation. c. rbara is liable to the corporation for only $2,500 since that was the amount in which she underpaid. d. John and Barbara are both liable for the $5,000, but the corporation cannot get a double recovery. 14. Which of the following is not a technique for avoiding the double taxation of corporate income? a. reasonable salaries paid to corporate employees b. interest-bearing loans to the corporation made by shareholders C. d. election of Subchapter S treatment payment of dividends from accumulated earnings