(5 pts) Indicate whether each of the following is either: A True B False An S Corporation is a taxpaying entity. If shareholders elect S Corporation status, the corporation generally pays no tax. Stock received by a transferor in exchange for services does not count in determining whether the 80% control test has been met. Under Sec. 351, no gain or loss is recognized by those who exchange property solely for stock of the recipient corporation. When boot is received by a taxpayer transferring assets in a Sec. 351 exchange, gain must be recognized to the extent of the smaller of the realized gain or the FMV of the boot received. (5 pts) Indicate whether each of the following is either: A True B False An S Corporation is a taxpaying entity. If shareholders elect S Corporation status, the corporation generally pays no tax. Stock received by a transferor in exchange for services does not count in determining whether the 80% control test has been met. Under Sec. 351, no gain or loss is recognized by those who exchange property solely for stock of the recipient corporation. When boot is received by a taxpayer transferring assets in a Sec. 351 exchange, gain must be recognized to the extent of the smaller of the realized gain or the FMV of the boot received