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 $80,000 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 $100,000; fair market value $120,000) 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.

Marie has income of $80,000 and $80,000 basis in her 400 shares of stock and Ethan has income of $$175,000 and $1600 shares of stock.

Explanation:

Data provided

Notes Receivable $25,000

Land $50,000

Inventory $100,000

The computation of given question is below:-

Total Basis = Notes Receivable + Land + Inventory

= $25,000 + 50,000 + $100,000

= $175,000

Marie has income of $80,000 and $80,000 basis in her 400 shares of stock and Ethan has income of $175,000 and $1600 shares of stock.

explanation: doctrine of respondeat superior is a legal doctrine that is commonly used in tort. this principle makes an employer or principal legally responsible for the wrongful acts done by an employee or agent, if such acts occur within the scope of the employment or agency.

answer; depth;