2). Aardvark Corporation which sustained a short-term capital loss of $18,000 during the year, will enter $18,000 as a subtraction on Schedule M-1 of Form 1120.

	True
	False

6). In 2016, Jerralyn owned 40% of ABC corporation and her mother Mina owned the remaining 60% of the stock. On Feb. 14, 2016, ABC redeemed all of Jerralyn's stock. For the redemption year, Jerralyn filed the agreement required of the family attribution waiver and reported the transaction as a complete termination redemption (i.e. sale and exchange). In 2022, Jerralyn's mom passed away and willed her entire interest in the ABC Corporation stock to Jerralyn. The inheritance of ABC Corporation stock by Jerralyn is a prohibited interest for purposes of the family attribution waiver.

	True
	False

8). In applying the Sec. 318 attribution rules to a stock redemption, the stock of a partnership is only deemed to be proportionately owned by the partner when the partner owns more than 50% of the partnership interest.

	True
	False

9).

When a subsidiary liquidates into the parent corporation, the subsidiary recognizes both gains and losses on distributions to a minority shareholder.

	True
	False