For question Corpor 54. The following are all adjustments to arrive at Earnings and Profits Except: a. Life Insurance Proceeds b. Federal Tax refunds c. Federal taxes paid d. Accelerated cost recovery depreciation over the straight line alternative depreciation system depreciation amount. e. Interest Income received on United States Treasury Bonds f. All of the above are adjustments to arrive at EGP 55. Generally speaking, the following assets will have what holding period and character in the hands of corporation following a qualifying Section 351 transaction: Long Term Capital "LTC": Long Term Ordinary "LTO": Short Term Capital "STC": Short Term Ordinary"STO": Other-"1231" a) Land originally purchased 6 months ago b) Equipment used in a trade or business purchased 18 months ago c) Furniture used in a trade or business purchased 2 months ago d) A vacant warehouse built 13 months ago but never placed into service e) Inventory manufactured 18 months ago 56. Generally speaking, the fair market value of a stock dividend is included in the gross income of the recipient. a. True b. False 57. A, B&C (unrelated individuals) each own 25 shares of Corporation Y's common stock. Corporation Y declares a dividend payable to all shareholders in the amount of $10 in cash or 5 additional shares of common stock. All shareholders elect to receive additional shares of stock. The above distribution will be tax free to the shareholders: a. True b. False 58. Corporation ABC Inc. has the following shareholders and makes the respective stock distributions John Peter Paul Luke Matthew 50 shares of voting common stock - distributes 100 shares of voting common 25 shares of voting common stock - distributes 50 shares of voting common 15 shares of voting common stock - distributes 30 shares of voting common 10 shares of voting common stock - distributes 20 shares of convertible preferred stock 100 shares of convertible preferred stock (I share of voting common for every 10 shares of preferred) - distributes 10 shares of convertible preferred stock The above distribution is taxable under Section 301 with respect to: a. John, Peter and Paul b. Luke & Matthew c. Not taxable to any of the shareholders d. Taxable to all of the shareholders Traile d2