QUESTION 7 Nanette receives a distribution of $170,000 From Johnson Corporation, ans Corporation, in which she is the sole one hundred percent (100 shareholder Johnson Corporation has an Accumulated Adjustments Account (MA) of $22.500 and Accumulated Emnings And Profits of $2.500. Nanets bassiner stock in Johnson Corporation is $30,000. The amount of Ordinary income (Dividends) recognized by Nanette as a result of this distribution $137.500 O True False QUESTIONS Melvina, an individual owns forty percent (40%) of the Norman Company for which her basis is $100,000. Melvina sells one-half (1/21 of her ownership interest to Walker for $80,000. If Norman Company is an s Corporation, Melvina has a Recognized Gain of $30,000 some of which may be Capital Gain and some may be Ordinary income False True QUESTION 9 Berry and Thibodeaux each have a fifty percent (509) ownership interest in Renella Partnership. Each partner has an adjusted bases in her Partnership interes of $100.000. Renella Partnerships Taxable income for the current year is $80,000 and it distributes $50,000 to each partner, Gettysbasis in her Partnership Interest at the end of the year is $50,000 False True QUESTION 10 Nanette contributes appreciated property (le, Adjusted Basis of $65,000 and Fair Market Value of $100,000) to her business entity in a transaction which qualifies for nonrecognition of gain. Nanette's ownership interest in the business entity is sixty percent (60%). The business entity later sells the appreciated property for $110,000. The property is not depreciable. If the entity is an Corporation, Nanette's share of the income from the sale of the property by the Corporation is $41,000, False True QUESTION 11 wa shareholder contributes Land with an adjusted Basis of $30,000 and a Fair Market value of $100,000 to Repular (Corporation in a transaction which qualifies for nonrecognition treatment under Section 351 of the Internal Revenue Code and the Corporation subsequently sells the Land for $100,000, none of the Recognized Gain of $70,000 is allocated to the contributing shareholder True Falso