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 $193,200 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 $458,240; fair market value $572,800) in exchange for 1,600 shares. If an amount is zero, enter "0". 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.

Show work.

If an amount is zero. Marie has income of $193,200 and $193,200 basis in her 400 shares of stock and Ethan has income of $0 and $533,240 basis in his 1600 shares of stock.

Explanation:

Ethan has no income and Ethan contributed the following assets and basis value of such assets will be basis for 1600 shares of stock:

Basis of Ethan:

Note Receivable =25,000

land= 50,000

Inventory = 458,240

Total basis = 25,000 + 50,000 + 458,240 = $533,240

We can now see Ethan has a total basis of $533,240

correct, but each time you dont pay the price of the penalty can increase.

urban company reports the following information regarding its production cost: units produced 37,000 units direct labor $ 30 per unit direct materials $ 35 per unit variable overhead $ 237,000 in total fixed overhead $ 127,000 in total