4. The tax basis of C corporate stock in the hands of an investor (outside basis) is generally the same as the net assets basis of the corporation (inside basis). Bold you answer: True False

5. The inside basis of the net assets of a C corporation is increased by taxable income less taxes paid in relation to the taxable income. Bold you answer: True False

6. Shareholders basis in their stock of a C corporation is increased by taxable income less taxes paid in relation to the taxable income. Bold you answer: True False

7. Generally, a non-taxable acquisition of a standalone C corporation involves an acquiring company transferring shares of itself to shareholders of a standalone C Corporation in return for their shares. This event is typically non-taxable to the shareholders of the standalone C Corporation unless they receive non-stock compensation or sell the stock they receive. If the shareholders of the standalone C Corporation accept non-stock consideration from the acquiring company, they will have to pay a tax on the greater of any gain from the transaction or the non-stock consideration received. Bold your answer: True False

8. Sellers in a non-taxable exchange of stock take substituted basis in the stock they receive. In other words, their basis in the received shares is the same as those they surrender in the transaction. Bold your answer: True False

9. Generally, a non-taxable acquisition of a standalone C corporation involves an acquiring Company transferring shares of itself to shareholders of the standalone C Corporation in return for their shares. This event is typically non-taxable to the shareholders of the standalone C Corporation. This type of transaction is may be desirable to the shareholders of the standalone C Corporation if they would have to report and pay tax on significant taxable gains in a taxable acquisition and believe the company they are effectively selling will not perform well as part of the acquiring company. This type of transaction also may be desirable to the acquiring shareholders if they believe their shares to be over-valued. Bold your answer: True False

10. Generally, in a taxable acquisition of a standalone C corporation where the acquiring Company takes carryover basis in the net assets of the acquired company, any Goodwill recognized by the acquiring company is tax deductible. Bold your answer: Essentially true Essentially not true