1. In a section 351 transaction where the shareholder transfers property (basis of $10, FMV of $20) subject to a business debt (debt of $3) to a corporation in which he receives only the corporations stock representing a controlling interest, the corporations basis in the property received will be:

1. Equal to the basis of the property transferred less the amount of the debt
2. Equal to the basis of the property transferred less the debt the corporation takes the property subject to plus the recognized gain
3. Equal to the basis of the property transferred
4. Equal to the basis of the property transferred plus the deck corporation takes the property subject to plus the realized gain

2. In a section 351 transaction the basis to the Corporation when receiving multiple assets from a shareholder should be:

1. Allocated between the assets based on their respective fair market values
2. Equal to the basis of each respective asset
3. Allocated between the assets when the assets are appreciated property
4. Equal to the basis of the respective asset only when both assets are depreciated property

3. In a section 351 transaction the basis to a shareholder in the boot received will be:

1. The basis of the boot when gain is realized
2. Equal to the basis of the boot when loss recognized
3. Equal to the basis of the boot when gain is recognized
4. Equal to the fair market value when gain is recognized

4. In a section 351 transaction when a corporation pays a liability that it took a property subject to, the corporation:

1. Increases its basis in the asset acquired
2. Decreases its basis in the asset acquired
3. Increases its basis in the asset where gain is recognized to the shareholder
4. Decreases its basis were loss as recognized to the shareholder

5. In a section 351 transaction, when debt is attached to property and is in excess of the basis of the property contributed by a shareholder to a corporation:

1. The excess debt will be treated as boot if the transferor recognizes either gain or loss
2. The excess debt will be treated as boot if the transferor only recognizes gain
3. The excess debt will be treated as boot if the transferor only recognizes loss
4. The excess debt will never be treated as boot in connection with a 351 transaction

6. In a section 351 transaction, the transferors of property need to own the following to have control of the corporation:

1. 80% of the voting stock and no shares of the nonvoting stock
2. 80% of the voting and nonvoting class of stock
3. 100% of the voting and 75% of the nonvoting class of stock
4. 75% of the voting and 100% of the nonvoting class of stock

7. In a section 351 transaction, if the transferors of property owned stock with contingent voting rights in order to have control of the corporation the shareholder must own:

1. 80% of the voting stock after the contingency occurs and no shares of the nonvoting stock
2. 80% of the voting stock regardless of the contingency and nonvoting class of stock
3. 100% of the voting stock after the contingency occurs and 75% of the nonvoting class of stock
4. 75% of the voting regardless of the contingency and 100% of the nonvoting class of stock