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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
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. Compute IPM and Zeta's realized and recognized gain on the exchange. Select one: O a. IPM realized and recognized $392,000 gain. Zeta realized and recognized $352,000 gain. O b. IPM realized $392,000 gain and recognized no gain. Zeta realized and recognized $352,000 gain. O c. There is not enough information to compute realized and recognized gain. O d. IPM realized $392,000 gain and recognized no gain. Zeta realized $352,000 gain and no recognized gain
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