IPM Inc. and Zeta Company formed IPeta Inc. by transferring business assets with

Question

IPM Inc. and Zeta Company formed IPeta Inc. by transferring business assets with a $675,000 FMV and a $283,000 adjusted tax basis and received 600 tax basis and received 400 shares. Compute IPM and Zeta's realized and IPM realized s392,000 gain and recognized no gain. Zeta realized in exchange for 1,000 shares of IPeta common stock. IPM transferred assets shares. Zeta transferred assets with a $450,000 FMV and a $98,000 adiusted recognized gain on the exchange. $352,000 gain and recognized no gain. uy B. IPM realized and recognized $392,000 gain. Zeta realized and recognized $352,000 gain. IPM realized $392,000 gain and recognized no gain. Zeta realized and recognized $352,000 gain. D. There is not enough information to compute realized and recognized gain. The Green Company Partnership has four equal partners. At the beginning of the year, Sheila was one of the Green partners, but on August 1, she sold her partnership interest to Ruth. If Green's ordinary income for the year was $620,000, what portion of this income should be allocated to Sheila, and what portion should be allocated to Ruth? heitey 0 rRbe SI, 606x 6 A. 303.9% Sheilas$3 10,000; Ruth-$310,000 Sheila $155,000; Ruth-$155,000 eila $90,417; Ruth $64,584 303,996 x 4 D. Sheila: $64,584; Ruth $90,417 Aaron James has a qualifying home office. The office is 500 square feet and the entire house is 2,50° square feet. Use the following information to determine his allowable home office deduction: Net income from self-employment before home office deduction Expenses from home (100%): $150,000 12,000 Home mortgage interest Property taxes Homeowner's insurance Utilities Depreciation on the office portien of the home s5,2407 $4,260 1,100 2800 $20-7 Corat B. 54,140 $21,800

Explanation / Answer

IPM realised gain (675000-283000) = 392000

Zeta Realised Gain (450000-98000) = 352000

Hence, option (a) is the correct answer

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