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Joe does a good job again in his second year of employment. Bonkers Corporation decides to let Joe purchase a motorcycle ( Bonkers Corporation has

Joe does a good job again in his second year of employment. Bonkers Corporation decides to let Joe purchase a motorcycle

(

Bonkers Corporation has some extra motorcycles

)

for $

2, 000 .

The fair market value of the motorcycle at the time of Joes purchase is $

10, 000 .

.

Does Joe have income with respect to this transaction? If so

,

how much?

.

What is Joes basis in the motorcycle?

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