Federal Tax Research 10th Edition by Steven Gill, Gerald Whittenburg, Roby Sawyers, Debra Sanders, William Raabe

Exercise 50

Hugo was planting a tree when he unearthed 100,000 certificates of ITT bearer bonds, with a current value of $4 million. He speculated that they had been placed there by the home's former owner (now deceased), at a time when they were worth nearly $400,000. Hugo did not sell the bonds by the end of the year. Must Hugo recognize any gross income with respect to the bonds