Kelley's employer gave her stock in the

current year for services performed with the

condition that she would have to return the

stock unless she completed $3$ years of service.

At the time of the transfer, her employer's basis

in the stock was $$6,000,$ and its fair market

value was $$8,000.$ Kelley did not make the

Sec. $83($b$)$ election. How much should she

include in her income for the current year, and

what would be her basis in the stock?

A$.$ Income of $$8,000$; basis of $$8,000.$

B$.$ Income of $$6,000$; basis of $$6,000.$

C$.$ income of $$8,000$; basis of $$3,000.$

D$.$ Kelley would not report any income or

have any basis in the stock until she has

completed $3$ years of service.