IPM Incorporated and Zeta Company formed IPeta Incorporated 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. Determine IPM and Zeta's tax basis in their IPeta stock and IPeta's aggregate tax basis in the transferred assets.

Multiple Choice

IPM's basis $283,000; Zeta's basis $450,000; IPeta's basis $733,000

IPM's basis $283,000; Zeta's basis $98,000; IPeta's basis $381,000

IPM's basis $675,000; Zeta's basis $450,000; IPeta's basis $1,125,000

None of these choices are correct