Which of the following statements is false regarding S-Corporations? A shareholder receiving a distribution in excess of basis will report a capital gain. An S-corporation may be subject to a built in gains tax if the cortioration was formally a C- corporabon with appreciated property. At-risk rules may limit an individual shareholders ability to deduct S-corporation losses against other sources of income. An S-Corporation which distributes property to its shareholders will recognize a gain or loss depending upon the assets FMV compared to toe cortioration's basis in the property just prior to the distribution