For each of the following indicate whether the statement is TRUE or FALSE.

a. ____ A resident alien may be a shareholder of an S-Corporation.

b. ____ An LLC can be taxed as an S-Corporation.

c. ____ A shareholders basis in the stock of an S-Corporation can be increased when the corporation borrows money from a bank.

d. ____ A calendar-year C-Corporation which is in its third year of operations can make an S-corporation election on May 15 which will be effective for a partial year beginning June 1st.

e. ____ Section 1245 recapture income of an S-Corporation is reported as a separately stated item shareholders via the K-1