This Year Joseph Joined the Board of Directors The Stock Bonus Consisted of 5,000 Shares of Bell Stock

question 62

Essay

This year Joseph joined the board of directors. Besides his director's fees, Joseph received the following employee benefits: $\begin{array}{lr}\text { Salary } & \$ 204,000 \\\text { Contributions to qualified pension plan } & 25,000 \\\text { Qualified health insurance premiums } & 8,000 \\\text { Stock bonus } & 20,000 \\\text { Annual director's fee } & 15,000 \\\text { Group-term life insurance premiums (face }=\$ 40,000) & 1,800\end{array}$ The stock bonus consisted of 5,000 shares of Bell stock given to Joseph as compensation. At the time of the transfer the stock was listed at $4 per share. What amounts, if any, should Joseph include in gross income this year?

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Definitions:

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