18 Which of the following is treated the same for both individuals and corporations? a. Depreciation recapture. b. Capital losses. c. Charitable contributions. d. Life insurance proceeds. e. None of the above are treated the same. QUESTION 19 Connor transfer equipment (basis of $200,000 and fair market value of $300,000) for additional stock in Monroe Corporation in a qualifying Section 351 transaction. After the transfer, Connor owns 100% of Monroe's stock. Associated with the equipment is Section 1245 depreciation recapture potential of $50,000. As a result of the transfer: a. Connor recognizes ordinary income of $50,000. b. The Section 1245 depreciation recapture potential does not carry over to Monroe. c. The Section 1245 depreciation recapture potential carries over to Monroe. d. Connor recognizes ordinary income of $50,000 and Section 1231 gain of $50,000. QUESTION 20 Carol and Candace are equal general partners in Daisy Partnership. In the current year, Daisy had a net profit of $100,000 and distributed $40,000 to each partner. Which of the following is true? Assume each partner's basis in their partnership interest is $400,000, Oa Daisy is subject to tax on the $100,000 net profit. b. Daisy is subject to tax on $20,000 of the profit. c. Daisy is not subject to tax on the $100,000. d. Both Carol and Candace will each be subject to tax on $50,000. 2 p