1.Shareholder reports capital gain or loss equal to the Market Value of the distribution compared to capital and preferred stock.

True

False

2.Interest are always taxable to a shareholder.

True

False

3.If a corporation pays a dividend in property, the stockholder will have a dividend equal to the corporate basis in the property.

True

False

4.A corporation has earnings and profits of $10,000 and makes a cash distribution to its sole shareholder in the amount of $11,000. The amount of taxable dividend to the shareholder is $11,000.

True

False

5.The Corporation using the Schedule M-1 for reconciliation from book income to taxable income.

True

False