QUESTION 8 A corporation can receive an automatic nine-month extension of its tax return due date if it files Form 7004 and pays the related tax liability by the due date of its return a True b. False QUESTION 9 2 Oscar decides to Incorporate his sole proprietorship. He transfers a building (used in his business) in exchange for 100% of the stock. Shortly before the transfer, Oscar mortgaged the real estate for $120,000 and used $15,000 of the loan proceeds to remodel his personal residence. He used the remaining $105,000 to purchase inventory for the new corporation (.e., a legitimate business reason). The corporation assumes the $120,000 debt. How much of the loan proceeds will be considered boot for purposes of calculating gain under Section 351 a zero b. $105,000 c. $120,000 d. $15,000 QUESTION 10 2 poll Sima transfers land (FMV = 100,000; basis = 45,000; mortgage on land 70,000) to Krandall, Inc., her 80% owned corporation in exchange for stock worth $30,000. Assume the transfer qualifies under Section 351. How much of the gain realized, if any, must Sima recognize on the transfer to Krandas, Inc.? a zero b. $45,000 c. $25,000 d. $70,000 None of the above