1.Ti transfers property worth $200,000 (basis of $190,000) to Herts Corporation. In return, she receives 80% of the stock in Herts Corporation (fair market value of $180,000) and a long-term note (fair market value of $20,000) executed by Herts and made payable to Ti. Ti recognizes gain on the transfer of:

$0.

$10,000.

$20,000.

$190,000.

None of the above.

2. Al owns a 45% interest in a partnership that earned $130,000 in the current year. He also owns 45% of the stock in a C corporation that earned $130,000 during the year. Al received $20,000 in distributions rom each of the two entities during the year. With respect to this information, Al must report $78,000 of income on his individual income tax return for the year.

a. true

b.false

3. Dee corporation is a C corporation with net income of $125,000 during the current year. If Dee paid dividends of $25000 to its shareholders the corporation must pay tax on $100,000 of net income. Shareholders must report the $25,000 of dividends as income.

a. true

b. false

4. Similar to the like-kind exchange provision, 351

can be partly justified user the wherewithal to pay concept.

a. true

b. false

5.Similar to the like kind exchanges, the receipt of "boot" under 351 can cause loss to be recognized.

a. true

b.false