Reference no: EM132460655

Marie and Ethan form Roundtree Corporation with the transfer of the following. Marie performs personal services for the corporation with a fair market value of $194,400 in exchange for 400 shares of stock. Ethan contributes an installment note receivable (basis $25,000; fair market value $30,000), land (basis $50,000; fair market value $170,000), and inventory (basis $462,080; fair market value $577,600) in exchange for 1,600 shares.

Question 1: Determine Marie and Ethan's current income, gain, or loss and calculate the basis that each takes in the Roundtree stock.

If an amount is zero, enter "0".

Problem 1: Marie has income of $__________ and $__________ basis in her 400 shares of stock and Ethan has income of $__________ and $__________ basis in his 1,600 shares of stock.