Corporation employed Employee, for whom a bonus of $45,000 is due and payable by Corporation, Corporation...

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Corporation employed Employee, for whom a bonus of $45,000 is due and payable by Corporation, Corporation was having cash flow issues and Employee agreed to accept a Mercedes owned by Corporation in lieu of the cash bonus. Corporation had a basis of $30,000 in the Mercedes and the vehicle was worth $45,000 at the time it was transferred to Employee. Who has gross income and in what amounts as a result? Corporation employed Employee, for whom a bonus of $45,000 is due and payable by Corporation, Corporation was having cash flow issues and Employee agreed to accept a Mercedes owned by Corporation in lieu of the cash bonus. Corporation had a basis of $30,000 in the Mercedes and the vehicle was worth $45,000 at the time it was transferred to Employee. Who has gross income and in what amounts as a result?

Answer rating: 100% (QA)

In this scenario both the Corporation and the Employee will have gross income but in different amoun... View the full answer