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Which of the following statements regarding S corporations is true?
-Generally, the transfer of property by a controlling shareholder to a newly-formed S corporation in exchange for stock is a nontaxable event.
-The owners of a new business should be indifferent between operating as an S corporation and a partnership.
-All states treat the S corporation as a taxable corporation for corporate franchise tax purposes.
-If an S corporations election terminates, the corporation is forced to liquidate.
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