1. What is the purpose of Code Sec. 351 in regard to transfers of corporations?2. What tax years are available to corporations? How do the
options differ from other forms of business organizations?3. What are the differences in the treatment of capital
gains and capital losses of corporations and of individuals?4. Susan Sweets is a 40 percent shareholder in Acclaim Inc.,
a theatrical supplies company. She transfers a fully depreciated car with a value
of $2,000 to the corporation, but does not receive any consideration for it.a. What are
the tax consequences to Susan?b. What are
the tax consequences to the corporation?c. What, if
any, changes if Susan received another 10 percent stock interest for the car?
5. A corporation has income of $62,000 from operations and a
net long-term capital loss of $5,000. What is the corporation’s taxable income
for the year?