Compute fair market value of the stock on schedule

Assignment Help Accounting Basics

Reference no: EM131770824

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.

Reference no: EM131770824

Questions Cloud

Beta of a company with an expected return : What is the beta of a company with an expected return of 12% if Treasury bills yield 6% and the market risk premium is 8%?

Discuss the book value of bedford''s buildings and equipment : If the book value of Bedford's buildings and equipment was $343,000 at the date of acquisition, what was their fair value

Debt in its capital structure : If a firm has three times as much equity as debt in its capital structure, then the firm has:

What amount should be included as a foreign exchange loss : what amount should be included as a foreign exchange loss

Compute fair market value of the stock on schedule : 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.

Discuss the pros and cons of starting out as a regular c : Discuss the pros and cons of starting out as a regular C corporation versus a sole proprietorship

Calculate the incremental profitability index : In order to determine which system should be selected, calculate the incremental profitability index (see example 16.4). Enter the incremental

Explain the impact of differences in the settings themselves : Explain the impact of differences in the settings themselves, inherent culture of the settings, and ethical practices of these sites on the patient.

Discuss the length of the partners holding period : The annualized after-tax rate of return to investing in the corporate form increases with the length of the partners holding period

User Account

All Pages