Answered

Welcome to Westonci.ca, where your questions are met with accurate answers from a community of experts and enthusiasts. Explore our Q&A platform to find in-depth answers from a wide range of experts in different fields. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently.

Jill 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. Jill must recognize $4,000 of gross income from the stock for the current year.
a) true
b) false

Sagot :

Answer:

a) true

Explanation:

Since in the question it is mentioned that the stock is received with the value of $4,000 and at the closing of the year the stock value is decreased to $2,000

But she continue to hold the stock and record $4,000 of the gross income from the stock

So at the time of income receipt, the realizable value is $4,000

Therefore the given statement is true

Thank you for trusting us with your questions. We're here to help you find accurate answers quickly and efficiently. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Westonci.ca is here to provide the answers you seek. Return often for more expert solutions.