Kim is an employee of Azure Corporation. In the current year, she receives a cash salary of $160,200 and also is given 50 shares of Azure stock for services she renders to the corporation. The shares in Azure Corporation are worth $1,500 each

a. How will the transfer of the 50 shares to Kim be handled for tax purposes? Kim has $75,000 of ordinary income. Kim's basis in the stock is how much?

b. What is Azure Corporation's total compensation deduction for Kim's services?