Retirement tax questions

I guess the main thing I'm concerned & confused about, is how the original parent's $1000 IRA seed is treated.

....or how it was supposed to be treated at the time that original seed-IRA was created.  

Like, did you have other earned (job) income in the year the original seed-IRA was created....and how was that contribution reported that year?  

 

OR maybe I'm just complicating the situation more than needed.   

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*