Indicate whether each statement is true or false.

1. Code Sec. 351 only applies to the organization of a corporation, not to transfers to an already existing corporation.

2. Individual A, an accountant, receives 50 shares of stock for services in connection with the organization of X corporation. Individual A has ordinary income to the extent of fair market value of the 50 shares.

3. Corporate distributions are dividends only if there are sufficient current earnings and profits.

4. A shareholder's basis in property distributed from a corporation is the basis of the corporation in such property.

5. A distributing corporation may be required to recognize gain on the distribution of property to a shareholder.

6. The dividend received deduction allowed to a corporation owning 20% of another corporation is 70%.

7. All organizational expenses must be amortized ratably over the 180 month period beginning with the month the corporation begins business.

8. The charitable contribution deduction for a corporation is limited to 10% of taxable income after the DRD and any net operating loss carryback.

9. A corporation deducts capital losses for the current year against its capital gains and any excess is deductible up to $3,000.

10. The assumption of a liability by the corporation in a Section 351 transaction is not considered boot.

11. The repayment of the face amount of a debt instrument is nontaxable to the holder of the debt.

12. Dividend distributions by a corporation to its shareholders are deductible to the corporation to the extent of its earnings and profits.

13. Pursuant to Section 166, an ordinary loss deduction is allowed to non-corporate lenders for non-business bad debts.

14. Upon a redemption by a corporation of shares, the shareholder may be accorded sale or exchange treatment.

15. Section 318 family attribution requires, among other things, brother/sister attribution.

16. The waiver of family attribution rules is available for all testing purposes under Section 302(b).

17. A distribution under Section 301 is first a taxable dividend to the extent of current or accumulated earnings and profits, then a return of capital and any excess is a capital gain.

18. Apartnership is an eligible shareholder of an S Corporation as long as all partners are individuals.

19. A calendar year corporation electing to be an S Corporation must do so by filing the proper form with the IRS on or before the 15th day of the 4th month of the corporation's tax year.

20. An S Corporation shareholder is prohibited from including any loans made by the shareholder in Its stock basis.