IPM IncAnd Zeta Company Formed IPeta Inc

Multiple Choice

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.Which of the following statements is false?

A) IPM's 600 shares of stock are worth $675,000.
B) Zeta's gain realized on the exchange is $392,000.
C) The exchange of stock for assets is nontaxable to IPeta.
D) None of the above is false.