Answer TRUE/FALSE for the below Statements

Shareholder contributed $120,000 to a newly formed corporation in exchange for stock. At the time of the contribution, the corporation's total contributed capital was $5 million. Shareholder's stock qualifies as $ 1244 stock. O True O False Earnings and profits of a corporation cannot be reduced below zero by a distribution of cash or property. O True False RST Corporation declared a dividend this year. The dividend was payable in RST stock worth $40 per share, or the shareholders could elect to receive cash of $40. B received stock and C elected to receive cash. B's dividend is nontaxable, whereas C's dividend is taxable. O True O False An organization may be treated as a corporation for Federal tax purposes even though it is not a corporation under state law. O True O False A corporation can be subject to the accumulated earnings penalty as well as the personal holding company penalty if both violations occur. True d False Section 351 applies to persons who transfer only services to the corporation in exchange for stock. True False