tell true and false of following statement

1 R formed X Corporation in 2010 with an investment of $40,000. For the investment, R received $40,000 worth of X Corporation stock. R was the only shareholder. If the stock became worthless in 2020, R should report the loss as a long-term capital loss.

2 Client X placed an order with her stock broker to sell 100 shares of ABC stock on December 31, 2020. The broker executed the order on that day (the trade date). The broker put the sales proceeds in Client Xs account on January 3, 2021 (the settlement date). Whether the client had a gain or a loss on the transaction, the results would need to be reported on the 2020 tax return.

3 Corporations pay tax at a flat rate of 21%, even if taxable income includes net long-term capital gains.

Group of answer choices