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. Determine IPM and Zeta's tax basis in their IPeta stock and IPeta's aggregate tax basis in the transferred assets.
A. IPM's basis $283,000; Zeta's basis $98,000; IPeta's basis $381,000
B. IPM's basis $283,000; Zeta's basis $450,000; IPeta's basis $733,000
C. IPM's basis $675,000; Zeta's basis $450,000; IPeta's basis $1,125,000
D. None of the above
Answer: A
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