QUESTION 4 Willa transferred land worth $400,000, with a tax basis of $100,000, to Zeta Corporation, an existing entity, for 600 shares of its stock. Zeta Corporation has two other shareholders, Jasper and Jonah, cach of whom holds 100 shares. With respect to the transfer: Jasper and Jonah both recognize gain on the transfer. Willa has a basis of $400,000 in her 600 shares in Zeta Corporation. Willa has no recognized gain. None of the above Zeta Corporation has a basis of $100,000 in the land. QUESTION note executed by Cadence trans ers property worth S 500 000, basis of S100 000 to Alpha Corporation for 80% of the stock n Alpha, worth S400 000, and a long te Alpha Corporation and made payable to Cadence, worth $100,000. Cadence recognizes a gain of $100,000 on the transfer. None of the above Cadence recognizes a gain of $400,000 on the transfer. Cadence recognizes no gain on the transfer. Cadence recognizes a gain of $300,000 on the transfer. QUESTION 8 Sadie incorporates her sole proprietorship with assets having a fair market value of $80,000 and an adjusted basis of $100,000. Even though $ 351 applies, Sadie may recognize her realized loss of S20,000. True False QUESTION 9 When a taxpayer incorporates her business, she transfers several liabilities to the corporation. If one of the liabilities is personal in origin, only that liability will be treated as boot. True False