1. Which of the following is not related under the constructive ownership rules of 318?

   		a. A 40 percent owned corporation.
   		b. A sister.
   		c. A partnership in which the taxpayer owns 40 percent.
   		d. a and b.
   		e. a, b, and c.

2. Erin and Mark are married. Veronica is Erins mother. Erin owns 50 shares of stock in the ABC Corporation. Mark is deemed to own ________________ shares of ABC Corporation and Veronica is deemed to own ____________________ shares of ABC Corporation.

		a. 50, 50
		b. zero, zero
		c. zero, 50
		d. 50, zero

3. Which of the following entities can receive sale treatment on a distribution in redemption of their stock when the distribution is considered to be received in partial liquidation?

		a. All noncorporate shareholders.
		b. All corporate shareholders.
		c. Corporate shareholders owning more than 50% of the redeeming corporations stock.
		d. a and b.
		e. a, b, and c.

4. IRC 302(b)(1) states that a redemption will be treated as an exchange if the redemption is not essentially equivalent to a dividend. The determination of whether a redemption qualifies under this provision is:

		a. very subjective.
		b. very objective.

5. The Crane case was an important one because in it the Court ruled that:

		a. taxpayers were entitled to an upfront basis for debt related to the acquisition of property before the debt was satisfied.
		b. taxpayers were not entitled to upfront basis for debt related to the acquisition of property before the debt was satisfied.
		c. stock dividends were not taxable.