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22 October, 17:07

Judy is a cash basis attorney. This year, she performed services in connection with the formation of a corporation and received stock with a value of $4,000 for her services. By the end of the year, the value of the stock had decreased to $2,000. She continued to hold the stock. Judy must recognize $4,000 of gross income from the stock for the current year.

a. true

b. false

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Answers (1)
  1. 22 October, 19:45
    0
    Judy must recognize $4,000 of gross income from the stock for the current year.

    True

    Explanation:

    When you receive stock in lieu of cash for payment for services rendered. you'll first owe income tax based on the value of the stock at that time.
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