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Peter is planning on incorporating his business, a fitness center. He has run the business...

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Accounting

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Peter is planning on incorporating his business, a fitness center. He has run the business for five years as sole proprietorship. The following assets will be contributed to the newly formed Average Joe's, Inc. (AJI): Asset FMV A/B Gym Equipment $10,000 $0 Client List $3,000 $0 Accounts Receivable $2,500 $0 Accounts Payable ($10,000) Cash $2,000 What results if Peter contributes the above assets to AJI in exchange for 100% of the newly formed corporation's stock

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