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Question: During the current year, Bruce, a self-employed attorney, performed legal services for Zoom Corporation. Bruce received 10 shares of Zoom's stock for his services. Which of the following statements concerning this transaction is true?

A. Bruce's basis in the stock is zero, and he does not report any income until he sells the stock.

B. Bruce's basis in Zoom's stock is the amount he usually charges for his services but he does not report any income until he sells the stock.

C. Bruce should include in income the fair market value of the stock on Schedule C (Form 1040) in the current year, and this becomes his basis for the stock

D. Bruce's basis in the stock is the same as Zoom's basis, and he should include this amount on Schedule C (Form 1040) in the current year.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92579507

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