Answer:
Therefore, Miriam's beginning basis in the S corporation is $12,400.
Explanation:
To determine Miriam's beginning basis in the S corporation, we need to calculate the total basis by considering the assets transferred and the capital contribution.
The beginning basis in the S corporation is the sum of the adjusted basis of the transferred assets and the capital contribution.
Adjusted basis of transferred assets: $7,400
Capital contribution: $5,000
Beginning basis in the S corporation = Adjusted basis of transferred assets + Capital contribution
= $7,400 + $5,000
= $12,400
Therefore, Miriam's beginning basis in the S corporation is $12,400.