Which of the following statements best describes the tax results to a shareholder in a 351 transaction when liabilities on property transferred to the corporation are assumed by the corporation?

Group of answer choices

Liabilities assumed by a corporation on a 351 transfer are treated as boot if there is no business purpose for the assumption of the liabilities by the corporation.

Liabilities assumed by a corporation on a 351 transfer are always treated as boot.

Liabilities assumed by a corporation on a 351 transfer are never treated as boot.

Liabilities assumed by a corporation on a 351 transfer are treated as boot if the total liabilities assumed exceed the total basis of the assets transferred.