(1) On January 1, of last year, Ronald, an attorney, received stock with a basis of $10,000 from Acme Corporation as compensation for his services. The fair market value of the stock was $15,600 when Ronald received it. On January 20 of the current year, Ronald sold the stock for $16,000. What amount should be included in Ronald's tax return for last year as a result of the receipt of the stock?

A $0

B $10,000

C $15,600

D $16,000

E $5,600

(2) On January 1, of last year, Ronald, an attorney, received stock with a basis of $10,000 from Acme Corporation as compensation for his services. The fair market value of the stock was $15,600 when Ronald received it. On January 20 of the current year, Ronald sold the stock for $16,000. What amount should be included in Ronald's tax return for the current year?

A $16,000 of long term capital gain

B $6,000 of long term capital gain

C $400 of short term capital gain

D $400 of long term capital gain

E $16,000 of short term capital gain