IPM Inc.and Zeta Company formed IPeta Inc.by transferring business assets in exchange for 1,000 shares of IPeta common stock.IPM transferred assets with a $675,000 FMV and a $283,000 adjusted tax basis and received 600 shares.Zeta transferred assets with a $450,000 FMV and a $98,000 adjusted tax basis and received 400 shares.Which of the following statements is false?
A) IPM's 600 shares of stock are worth $675,000.
B) Zeta's gain realized on the exchange is $392,000.
C) The exchange of stock for assets is nontaxable to IPeta.
D) None of the above is false.
Correct Answer:
Verified
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