QUESTION 12 Daniels and Broussard each own one half (1/2) of the stock of Wiley Corporation, ans Corporation. Each shareholder aan de basis in nerako $100,000. Wiley Corporation has no Accumulated Earnings And Profits (EP) Wiley Corporation's Tavahe income for the current years $10.000 and distributes $50,000 to each shareholder. Daniels' basis in her stock at the end of the year is $90,000. False ) The QUESTION 13 Johnella and Brown are going to establish a business entity. They expect the business to be very successful in the long run but project Losses of approximately $100,000 for each of the first five (5) years. Due to potential environmental concerns, Limited Liability is a requirement for the owners as well as the ability to deduct the Losses of the entity on their personal Federal Income Tax Return. To completely achieve these objectives, a Regular (Corporation should be selected True False 1 QUESTION 14 The shareholders of ans Corporation all have Limited Liability with respect to their ownership interests in the Corporation where ondoan Limited Partnership have Limited Liability with respect to their ownership interests in a Limited Partnership The False QUESTION 15 Bradford contributed cash of $25,000 and Land with an adjusted Basis of 545,000 and a Fair Market Value of $75,000 to an entity for a seventy-five percent (75) ownership interest in the entity. There is no debt on the Land. The entity was created three (3) years ago. If the entity is a Partnership, bradford has no Recognized Gain and an initial basis in her Partnership Interest of $70,000 False True QUESTION 16 Savannah and Johnson form a business entity with Savannah contributing Cash of $70,000 and Johnson contributing and which has an Adjusted Basis of $60,000 and a Fair Market Value of $70,000. At the end of the first year of operations, the business entity has earned a profit of $30,000 and has outstanding liabilities of $40,000. If the entity is an S Corporation, Johnson's basis in her stock at the end of the first year is $85,000. False True