How much income does fm recognize from the transactions

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Reference no: EM13944420

On January 2 of the current year, Fenton and Myers form the FM LLC. Their contributions to the LLC are as follows:

	Adjusted Basis	Fair Market Value
From Fenton: Cash	$ 50,000	$ 50,000
Accounts receivable	-0-	90,000
Inventory	25,000	60,000
From Myers: Cash	200,000	200,000

Within 30 days of formation, FM collects the receivables and sells the inventory for $60,000 cash. How much income does FM recognize from these transactions, and what is its character?

Reference no: EM13944420

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