Roberta Warner and Sally Roger formed the Acme Corporation on October 1, 2016. On the same date Warner paid $75,000 cash to Acme for 750 shares of its common stock. Simultaneously, Roger received 100 shares of Acme's common stock for services rendered. How much should Roger include as taxable income for 2016, and what will be the basis of her stock?
a. $0 $0
b. $10,000 $10,000
c. $0 $10,000
d. $10,000 $0
Ans: b. $10,000 $10,000
Business
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