e0. Which of the following is NOT taken into account when determining if gain or loss should be recognized by the shareholder on the transfer of property to a corporation in exchange for a controlling interest in stock of the corporation.

a) Ownership of a least 80% of all stock b) Receiving money in addition to stock c) Fair market value of property transferred to corporation by shareholder d) Mortgage on shareholders property assumed by corporation. e) None of the above.

Indicate whether each of the following is either: A True. B False

41. An S Corporation is a taxpaying entity. 42. If shareholders elect S Corporation status, the corporation generally pays no tax. 43. Stock received by a transferor in exchange for services does not count in determining whether the 80% control test has been met. 44. Under Sec. 351, no gain or loss is recognized by those who exchange property solely for stock of the recipient corporation. 45. 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.