1.Liquidation occurs when a partner's entire interest is redeemed by the partnership.

True

False

2.A partner can recognize a loss on a liquidating distribution.

True

False

3.All C corporations file their tax returns using a Form 1120.

True

False

4.When a corporation is formed, if the sole shareholder receives stock in exchange for property subject to a liability, the shareholder will recognize a gain.

True

False

5.Corporate distributions to shareholders from earnings and profits are called dividends.

True

False