Which of the following requirements are necessary for qualified nonrecourse financing to be considered at risk?

A) The borrowing must be for the activity of holding real property which includes the holding of personal property and the provision of services that are incidental to the use of real property.

B) The borrowing must be from a qualified person or from any federal, state or local government or government instrumentality, or the loan must be guaranteed by federal, state or local government.

C) No person may be personally liable for the financing, except as provided in IRS regulations.

D) The borrowing may not be convertible debt.

E) All of the above.

A Limited Liability Company:

A) Can be managed by a non-member

B) Can be taxed as Corporation

C) Can be taxed as a Partnership

D) B and C

E) All of the above

Which of the following is true about lease terminations?

A) On the termination of a lease, the lessee recognizes income because the improvements that were made by the lessee remain with the property.

B) If a lessee has made improvements to leased property, those improvements become the property of the lessor on the termination of the lease.

C) The lessee may depreciate the value of the improvements to leased property by the value of lessee improvements that are included as rent.

D) The lessor will be taxed on the improvements treated as rent made by the lessee upon the termination of the lease.

E) All of the above are true.