An individual provides accounting services to a corporation in exchange for stock.The shareholder must recognize income and the corporation may deduct or capitalize the expenditure as would be appropriate.

Question

Quizplus · Accepted Answer

The individual providing accounting services is receiving compensation in the form of stock, which is a taxable event and must be recognized as income. The corporation may be able to deduct or capitalize the expenditure depending on the circumstances.

An Individual Provides Accounting Services to a Corporation in Exchange