true false questions

1. M incorporated her proprietorship this year. After receiving all of the stock of her new corporation, she immediately transferred 30% of the stock to her sister. Ms exchange is not taxable even though she retained control only briefly after the exchange.

2. P formed Y Corporation by transferring property worth $70,000 to the corporation for all of its stock. The property had a basis of $30,000 and was subject to a mortgage of $10,000. Ps basis in her stock is $20,000.

3. N established L Corporation by transferring property worth $100,000 (basis $25,000) to the corporation for all of its stock. Ns basis in the stock received is the same as the corporations basis for the property, $25,000.

4. If a corporation receives a nonshareholder contribution representing an inducement rather than payment for corporate goods or services, the corporation must include the transfer in gross income.