Question
Blair, CPA, uses the cash receipts and disbursements method of reporting. In Year 7, a client gave Blair 100 shares of a listed corporation's stock
Blair, CPA, uses the cash receipts and disbursements method of reporting. In Year 7, a client gave Blair 100 shares of a listed corporation's stock in full satisfaction of a $5,000 accounting fee the client owed Blair. This stock had a fair market value of $4,000 on the date it was given to Blair. The client's basis for this stock was $3,000. Blair sold the stock for cash in January, Year 8. In Blair's Year 7 return, what amount of income should be reported in connection with the receipt of the stock?
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
13th Edition
9780470374948, 470423684, 470374942, 978-0470423684
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